Cocoa #7 Futures Market News and Commentary
September ICE NY cocoa (CCU22) on Friday closed down -26 (-1.11%), and September ICE London cocoa #7 (CAU22) closed up +2 (+0.12%).
Cocoa prices on Friday settled mixed, with NY cocoa falling to an 11-1/2 month low. Cocoa prices fell sharply this week as recent rains in West Africa should boost cocoa yields in the Ivory Coast and Ghana, the world's two biggest cocoa producers. London cocoa Friday recovered from early losses and settled slightly higher after the British pound (^GBPUSD) fell to a 2-1/2 week low. A weaker pound boosts cocoa priced in sterling.
Concern that rising inflation and a slowdown in the global economy will curb demand for commodities, including cocoa, is bearish for prices. The International Cocoa Organization June 16 released a report saying that "rising inflation could restrain the consumption of non-essentials and luxury goods including cocoa products should the situation persist."
Ample cocoa supplies from the Ivory Coast are bearis... Read more