U.S. supply chain overwhelmed by demand

Commodity inflation has been challenging enough over the past year, but supply chain issues have multiplied the increase through higher direct costs as well as premiums associated with receiving the product on time. Sourcing U.S.-produced goods may help to soften the impact, but even [...]

Spec buying propels cocoa market to six-month high

A short-covering rally and fund participation took cocoa prices up over $300, up over 13 percent, over the past 30 days after reaching low prices in the middle of July. After trying to go net short in the first half of July, speculators reversed [...]

Seven-day rally takes cocoa futures to two-week high

On Wednesday, Jul 28, nearby Sep-21 NY cocoa closed above retracement resistance near $2,400 and $2,410 after a seven-session rally. The contract briefly tested retracement resistance and the upper Bollinger Band around $2,450 but settled instead below the mid-July high of $2,430. The contract may [...]

Cocoa: Big crops meet big grind in second quarter

Improved weather, with rains returning from mid-June to early July, has brought relief to farmers across Ivory Coast. Recent crop estimates now place cumulative arrivals in Ivory Coast approaching 2.25 MMT to 2.30 MMT (gross), and Ghana purchase figures are expected to top 900,000 [...]

Strong cocoa Q2 2021 grind rebounds in Europe & North America?

This week, ECA reported European Q2 2021 cocoa grind is at a record 356,854 MT, down 0.3 percent from Q1 grind of 357,815 but up 13.6 percent from Q2 2020 YOY. German Q2 grind had been reported at 93,064 MT of beans, up 18 [...]

Speculative funds liquidate half their cocoa positions

This past week’s CFTC report showed that funds had liquidated half of their remaining futures this past week, taking net positions to their lowest in nearly nine months. Abundant rains are improving the prospects for the upcoming West African main crops, and lower than [...]

Cocoa sees technical support at uptrend

Inflation-related volatility continues to impact commodity pricing, and cocoa is seeing recent price weakness on fund liquidation. Since their mid-May highs, cocoa futures have fallen nearly $200 per MT or nearly a tenth on position liquidation ahead of the July contract expiration. With futures [...]

NY cocoa ends four-day slide with minor rebound

At the end of May, benchmark Sep-21 NY cocoa consolidated below its 20-day moving average but saw a four-day slide from last Wednesday to this Monday’s one-month low. After breaking support around $2,445 Monday and closing near its lower Bollinger Band, the contract rebounded [...]

Load More Posts