Cocoa Futures Market News and Commentary
July ICE NY cocoa (CCN22) on Wednesday closed down -34 (-1.39%), and July ICE London cocoa #7 (CAN22) closed down -27 (-1.56%).
Cocoa prices Wednesday settled moderately lower, with NY cocoa posting a 5-3/4 month low and London cocoa posting a 2-week low. Signs that higher chocolate prices are curbing demand is weighing on cocoa prices. Data from market researcher IRI shows U.S. chocolate sales in the 13-week period ending May 15 fell -6.3% y/y, while prices rose +11% y/y.
An increase in ICE cocoa inventories is bearish for prices. ICE cocoa inventories Tuesday rose to a 6-1/4 month high of 5.186 mln bags.
Ample cocoa supplies are bearish for prices after the Ivory Coast government reported Tuesday that Ivory Coast cocoa farmers sent a cumulative 2.13 MMT of cocoa to Ivory Coast ports from Oct 1-May 22, down only -0.9% y/y.
The prospect for bumper cocoa crops this year in West Africa is a bearish factor for prices. Cocoa farmers in the Ivory Coast and... Read more