Cocoa Futures Market News and Commentary
Dec ICE NY cocoa (CCZ21) on Friday closed down -21 (-0.80%), and Dec ICE London cocoa #7 (CAZ21) closed down -24 (-1.32%).
Cocoa prices on Friday closed moderately lower for a second day, with NY cocoa falling to a 3-week low and London cocoa sliding to a 1-1/2 week low. Signs of ample cocoa supplies are pressuring prices after the lvory Coast government reported Monday that Ivory Coast farmers sent 2.45 MMT of cumulative cocoa to Ivory Coast ports during Oct 1-Sep 19, up +7.0% y/y. Also, cocoa supplies are robust from Ghana, the world's second-largest cocoa producer, after the Ghana Cocoa Board reported Sep 2 that it purchased 1.03 MMT of cocoa from farmers in the season of Oct 1 to Aug 19, the most in a decade.
An excessive long position of London cocoa futures from funds may fuel long liquidation pressures after Friday's weekly COT data showed funds in the week ended Sep 21 boosted their long London cocoa futures positions by +4,829 to a 15-month high of 37,056. Read more