Cocoa Dec '24 (CCZ24)
Cocoa Futures Market News and Commentary
September ICE NY cocoa (CCU26) on Thursday closed up +274 (+5.51%), and July ICE London cocoa #7 (CAN26) closed up +173 (+4.63%).
Cocoa prices extended their two-week-long rally on Thursday, surging to 5.5-month highs.  Concerns about the upcoming West African cocoa crop are pushing prices sharply higher. Heavy rains in the Ivory Coast and Ghana have flooded roads and cut off farmers’ access to farms and ports, threatening global supplies. Accumulated June rainfall through Monday has already reached levels near the typical average for the entire month in both countries. Excessive moisture also increases the risk of brown rot disease on cocoa trees, reducing yields and jeopardizing the harvest.Â
Cocoa prices also have underlying medium-term support from future weather concerns. On June 10, Japan’s Meteorological Agency confirmed an El Niño weather pattern had formed across the equatorial Pacific. An El Niño typically brings warmer, drier conditions to West Africa, red... Read more
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