Cocoa Futures Market News and Commentary
Sep ICE NY cocoa on Friday closed up +56 (+2.39%), and Sep ICE London cocoa #7 (CAU20) closed up +21 (+1.31%).
NY cocoa prices on Friday rallied sharply on technical buying and short-covering on the breakout to a new 7-week high. Cocoa also saw support from the early drop in the dollar index to a new 2-year low, although the dollar index later recovered. London cocoa on Friday rallied back up towards Thursday's 4-week high.
Cocoa prices were boosted by last Friday's comments from the Ivory Coast's agricultural minister, who said he wants less Ivory Coast cocoa sold through forward sales, which will reduce the supplies of cocoa on the global market.
Reduced cocoa output from Ghana, the world's second-largest cocoa producer, is also positive for cocoa prices. The Ghana Cocoa Board reported last Monday that cocoa purchases from farmers were down -4.3% y/y to 742,725 during Oct 1-Jun 4.
A potential bullish factor for cocoa prices is an extremely large short p... Read more