Cocoa Futures Market News and Commentary
Dec ICE NY cocoa (CCZ21) on Friday closed up +23 (+0.89%), and Dec ICE London cocoa #7 (CAZ21) closed down -5 (-0.28%).
Cocoa prices on Friday settled mixed with London cocoa falling to a fresh 2-week low. London cocoa was under pressure Friday from the rally in the British pound (^GBPUSD) to a 4-week high. A stronger pound undercuts the price of cocoa quoted in terms of sterling.
Tighter cocoa supplies are supportive of prices after ICE-monitored U.S. cocoa inventories on Friday fell to a 4-1/2 month low, down from the record high of 5.86 mln bags (data from 1999) posted on June 30. Also, ICE-monitored EU cocoa inventories fell to an 8-month low Tuesday.
Recent data shows that global cocoa demand is mixed. The European Cocoa Association reported Wednesday that European Q3 cocoa processing rose +8.7% y/y to 375,811 MT, above the consensus of +5.8% y/y. On Thursday, the North American Confectioners Association reported Q3 North American cocoa grindings rose +4... Read more