Cocoa Jul '23 (CCN23)
Cocoa Futures Market News and Commentary
May ICE NY cocoa (CCK26) on Tuesday closed down -78 (-2.37%), and May ICE London cocoa #7 (CAK26) closed down -51 (-2.06%).
Cocoa prices retreated on Tuesday amid a stronger dollar ($DXY) and signs of abundant supplies after ICE cocoa inventories rose to a 20-month high of 2,632,357 bags on Monday.
Weakness in global cocoa demand is also bearish for prices. Â The National Confectioners Association reported last Thursday that North American Q1 cocoa grindings fell -3.8% y/y to 106,087 MT. Â Also, the European Cocoa Association reported that Q1 European cocoa grindings fell -7.8% y/y to 325,895 MT, a bigger decline than expectations of -6% y/y and the lowest for a Q1 in 17 years. Â Conversely, the Cocoa Association of Asia reported that Q1 Asian cocoa grindings unexpectedly rose +5.2% y/y to 223,503 MT, stronger than expectations of a decline of -6.7% y/y.
Weak signs of chocolate demand are negative for cocoa prices. Â Circana reported last Tuesday that chocolate candy s... Read more
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