Cocoa #7 Futures Market News and Commentary
July ICE NY cocoa (CCN23) on Wednesday closed down -6 (-0.20%), and July ICE London cocoa #7 (CAK23) closed down -3 (-0.13%).
Cocoa prices Wednesday closed slightly lower, pressured by a rally in the dollar index to a 2-month high. Losses in London cocoa were limited after the British pound (^GBPUSD) Wednesday fell to a 5-week low against the dollar. A weaker pound boosts cocoa that is priced in terms of sterling.
Losses in cocoa prices Wednesday were limited by smaller cocoa supplies from Nigeria after the Cocoa Association of Nigeria reported that Nigeria's Apr cocoa exports fell -46% m/m and -20.6% y/y to 9,924 MT. Nigeria is the world's fifth-largest cocoa bean producer.
An increase in cocoa inventories is negative for prices after ICE-monitored cocoa inventories held in U.S. port warehouses Monday rose to an 8-1/4 month high of 5,730,012 bags. ICE-monitored cocoa inventories held in European port warehouses last Monday rose to an 8-month high of 147,440 MT... Read more