Cocoa Jul '18 (CCN18)
Cocoa Futures Market News and Commentary
July ICE NY cocoa (CCN26) on Thursday closed down -1 (-0.02%), and July ICE London cocoa #7 (CAN26) closed up +35 (+1.11%).
Cocoa prices settled mixed on Thursday. NY cocoa was under pressure today from a stronger dollar and rising US inventories. The dollar index ($DXY) rose to a 13-month high on Thursday, weighing on most commodity prices. However, London cocoa recovered from early losses on Thursday and moved higher after the British pound (^GBPUSD) tumbled to a 2.25-month low, boosting cocoa priced in sterling.Â
Rising cocoa inventories are also bearish for prices. ICE cocoa inventories rose to a 1.75-year high of 2,929,074 bags on June 5 and were just slightly below that level at 2,918,736 bags on Wednesday.
On Wednesday, cocoa prices rallied to 3-week highs as the market began pricing in weather risks following confirmation of an El Niño pattern last week.  An El Niño typically brings warmer, drier conditions to West Africa, reducing soil moisture, stressi... Read more
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