Cocoa Sep '23 (CCU23)
Cocoa Futures Market News and Commentary
July ICE NY cocoa (CCN26) on Tuesday closed up +20 (+0.44%), and July ICE London cocoa #7 (CAN26) closed up +23 (+0.66%).
Cocoa prices added to Monday’s sharp rally on Tuesday and posted fresh 6-week highs.  Cocoa prices are supported by heavy rains in the Ivory Coast, which have flooded roads and cut off farmers’ access to farms and ports. Excessive moisture also increases the risk of brown rot disease on cocoa trees, reducing yields and jeopardizing the harvest. Prices fell back from their best levels on Tuesday after the dollar index ($DXY) rallied to a 13-month high.
Cocoa prices have underlying medium-term support from weather concerns. On June 10, Japan’s Meteorological Agency confirmed an El Niño weather pattern had formed across the equatorial Pacific. An El Niño typically brings warmer, drier conditions to West Africa, reducing soil moisture, stressing cocoa trees, and lowering yields. The US National Oceanic and Atmospheric Administration (NOAA) estimates... Read more
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