Excessive rainfall in West Africa is a concern for the yield and production of the cocoa crop. Despite the weather challenge, Ivory Coast is expected to have a good harvest. Harvest in Nigeria, the fifth-largest cocoa producer, is slow but promises to pick up next month and into the new year. 

Demand for sugar-free and organic chocolates, as well as for premium dark chocolates and industrial chocolates, has grown. The anticipation of the crop’s availability and growing demand have sparked trader interest in the market. 

Cocoa futures settled at $3,639 per MT on Oct. 18 for Dec-23 NY cocoa, up $4 from Oct. 17’s close. The session continued a five-day rally after the contract corrected in the latter part of September. RSI is neutral at 55.7 percent, with the MACD bullish and stochastic overbought. 

Dec-23 London cocoa closed £6 lower than Oct. 17 at £3,183 per MT on Oct. 18, ending a four-session rally. RSI is bearish at 65.2 percent; MACD is bearish, and the stochastic overbought. 

The full version of this commentary appeared on our IQ platform Oct. 18, 2023. Further information, statistics, and pricing for the cocoa market are available to IQ subscribers. Learn more about becoming a subscriber.

Source: 123rf.com
Posted by: Information Services
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