Cocoa Futures Market News and Commentary
Sep ICE NY cocoa on Friday closed up +36 (+1.43%), and Sep ICE London cocoa #7 (CAU20) closed up +18 (+1.07%).
Cocoa prices on Friday extended their month-long rally with NY cocoa at a 5-month high and London cocoa at a 6-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.
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 181,475 MT, citing the spread of the fungal black pod disease caused by heavy rain in Nigeria's main growing areas.
Near-term cocoa supplies are ample from the Ivory Coast, the w... Read more