Cocoa Futures Market News and Commentary
Sep ICE NY cocoa (CCU21) on Friday closed up +4 (+0.17%), and Sep ICE London cocoa #7 (CAU21) closed up +12 (+0.76%).
Cocoa prices on Friday closed slightly higher on consolidation after recent losses. Cocoa prices sold off sharply over the past week and slumped to a 4-month nearest-futures low Tuesday on concern the spread of the Covid delta variant worldwide will reduce economic activity and demand for commodities, including cocoa. The Delta variant has forced renewed lockdowns across parts of Asia and Australia. The 7-day average of new U.S. Covid infections rose to a 2-1/2 month high Wednesday of 40,062.
An extreme short position in London cocoa futures raises the risk of a short-covering rally after Friday's weekly COT data showed that funds boosted their net-short London cocoa position by 9,537 in the week ended July 20 to 31,233, a 3-year high.
Ample cocoa supplies from the Ivory Coast, the world's biggest cocoa producer, are a bearish factor for prices.... Read more