Cocoa #7 Futures Market News and Commentary
Dec ICE NY cocoa (CCZ23) on Friday closed -13 (-0.36%), and Dec ICE London cocoa #7 (CAZ23) closed +21 (+0.70%).
Cocoa prices Friday settled mixed. NY cocoa Friday was under pressure as the dollar index (DXY00) climbed to a 6-1/2 month high. However, London cocoa Friday moved higher on weakness in the British pound (^GBPUSD), which fell to a 5-3/4 month against the dollar. The weaker pound boosts cocoa that is priced in terms of sterling.
ICE-monitored cocoa inventories held in U.S. ports have steadily declined over the past four months to a 7-1/4 month low Friday.
Cocoa prices have trended higher over the past year, with nearest-futures (U23) NY cocoa climbing to a 44-year high last Wednesday and London cocoa posting a record high last Friday on concerns about global cocoa production. Due to recent heavy rain in West Africa, black pod disease has spread. The spread of the disease, which causes cocoa pods to turn black and rot, could result in lower cocoa... Read more