Cocoa Futures Market News and Commentary
December ICE NY cocoa (CCZ22) on Tuesday closed up +23 (+0.98%), and December ICE London cocoa #7 (CAZ22) closed up +7 (+0.37%).
Cocoa prices Tuesday rose moderately, with NY cocoa posting a 2-week high. A fall in the dollar index Tuesday to a 2-week low boosted cocoa prices. Gains in London cocoa Tuesday were limited after the British Pound (^GBPUSD) rose to a 2-1/2 week high. A stronger pound undercuts cocoa priced in terms of sterling.
An excessive short position by funds in NY cocoa may fuel any short-covering rally. Last Friday's weekly Commitment of Traders (COT) data showed funds boosted their NY cocoa net-short positions by 7,890 in the week ended Sep 27 to a 5-year high of 44,434.
Abundant cocoa supplies from the Ivory Coast, the world's biggest cocoa producer, are bearish for prices. The Ivory Coast government reported Monday that Ivory Coast cocoa farmers sent a cumulative 2.47 MMT of cocoa to Ivory Coast ports for the 2021/22 season (Oct-1-Sep 30... Read more