Cocoa Jul '23 (CCN23)
Cocoa Futures Market News and Commentary
July ICE NY cocoa (CCN26) on Friday closed down -203 (-5.12%), and July ICE London cocoa #7 (CAN26) closed down -113 (-3.75%).  Cocoa prices extended this week’s sharp losses, with NY cocoa falling to a 2-week low and London cocoa falling to a 1.5-week low. Losses in London cocoa were limited on Friday after the British pound (^GBPUSD) fell to a 2.5-week low, boosting cocoa priced in terms of sterling.Â
Chocolate demand concerns are weighing on cocoa prices after Barry Callebaut, the world’s seventh-largest chocolate maker by revenue, provided updated guidance this week that suggests a slower recovery in sales volumes than previously assumed.
Cocoa prices are also under pressure from rising inventories. ICE cocoa inventories rose to a 1.75-year high of 2,929,074 bags on Friday.
The downside to cocoa losses over the medium term may be limited amid mounting weather concerns. The formation of an El Niño weather pattern could lead to warmer, drier conditions in West A... Read more
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