Cocoa Futures Market News and Commentary
March ICE NY cocoa (CCH24) on Friday closed -76 (-1.78%), and Dec ICE London cocoa #7 (CAZ23) closed -79 (-2.21%).
On Friday, cocoa prices retreated after the International Cocoa Organization (ICCO) cut its 2022/23 global cocoa deficit estimate to -99,000 MT from a previous forecast of -116,000, citing weaker global demand.
On Thursday, Mar NY cocoa posted a contract high, and nearest-futures (CCZ23) posted a 46-year high. Cocoa prices remain underpinned as continuous rain has limited fieldwork and encouraged crop disease on West African farms, which provide most of the world's cocoa supply. It has also stoked concern that current cocoa production cannot replenish supplies to avoid a global deficit. According to Maxar Technologies, the total precipitation in West Africa since the rainy season started May 1 has been more than double the 30-year average.
Signs of smaller cocoa output in the Ivory Coast, the world's largest cocoa producer, are bullish for prices.... Read more