Cocoa Futures Market News and Commentary
Sep ICE NY cocoa on Thursday closed up +29 (+1.17%), and Sep ICE London cocoa #7 (CAU20) closed up +11 (+0.66%).
Cocoa prices on Thursday posted moderate gains with NY cocoa at a new 6-week high and London cocoa at a fresh 5-week high. Concern about dry conditions in Ghana, the world's second-largest cocoa producer, continues to spur fund buying as weather forecasts are calling for limited chances of rain in Ghana over the next week. The Ghana Cocoa Board reported July 20 that cocoa purchases from farmers were down -4.3% y/y at 742,725 during Oct 1-Jun 4.
London cocoa prices fell back from their best levels after GBP/USD rallied to a 4-3/4 month high on Thursday. Strength in GBP/USD undercuts cocoa that is priced in sterling.
Another bullish factor is smaller cocoa output from Nigeria, the world's fifth-biggest cocoa producer. The Cocoa Association of Nigeria on July 17 cut its Nigeria 2019/20 cocoa production estimate to 148,750 MT from a previous estimate of 1... Read more