Cocoa Futures Market News and Commentary
May ICE NY cocoa (CCK21) on Friday closed down -79 (-3.01%), and May ICE London cocoa #7 (CAK21) closed down -28 (-1.55%).
Cocoa prices on Friday sold off sharply, with NY cocoa at a 1-week low. A rally in the dollar index Friday to a 3-1/4 month high undercut NY cocoa futures. Losses in London cocoa were limited by Friday's decline in GBP/USD to a 3-week low, which boosts cocoa that is priced in terms of sterling.
On Wednesday, NY cocoa earlier climbed to a 3-month high, and London cocoa posted a 5-1/4 month high, on speculation that an easing of the pandemic and a faster pace of Covid vaccinations will allow lockdowns and restrictions on travel to be lifted, which should boost chocolate demand. The 7-day average of new U.S. Covid infections fell to 59,125 on Thursday, the lowest in 4-1/2 months, and Bloomberg data shows more than 265 million doses administered across 108 countries as of Tuesday.
Cocoa prices remain ample from the Ivory Co... Read more