cocoa futures news

cocoa futures news

February 21st, 2017

Cocoa futures prices plunged to eight-and- a-half year lows last week, on ideas of a substantial glut in the market, thanks to a huge crop in Cote D’Ivoire, the world’s top producer.

But with much of the crop reported to be stuck in lorries, or rotting on the trees, and with farmer incomes squeezed by low prices and slow sales, how long can this market surplus last?

And if cocoa processors step in to buy and the current rock-bottom price, after depleting their butter and powder stocks during a low period of low grinding, will they find the volumes and the quality they expect?

Cocoa Futures: Government programme backfires

Farmers in Cote D’Ivoire are struggling to find buyers for their beans, after a large number of local exporters reneged on contracts.

“What appears to be the root cause is that an attempt by the government to try to improve the position of small exporters has backfired very badly,” explains Edward George, head of commodity research at the pan-African bank Ecobank.

The Ivorian Coffee and Cocoa Council (CCC) this season increased the share of contracts they gave to small local exporters, allowing them to buy beans locally and sell them onto the international market.

“The CCC wanted to give the smaller exporters a bigger piece of the pie,” Mr George says.

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cocoa options

cocoa options

February 7th, 2017

Cocoa prices should regain some ground by the end of 2017 following a prolonged slide fueled by expectations for a global surplus in the current 2016/17 season, a Reuters poll of nine traders and analysts showed on Tuesday.

The survey’s median forecast for New York cocoa futures prices at the end of the year was $2,400 a tonne, up 17 percent from Monday’s close.

London cocoa futures were also seen rising, with a median forecast of 1,880 pounds a tonne for the end of 2017, up 12 percent from Monday’s close.

Supportive factors included a potential pick-up in demand later this year, the prospect of lower farmer prices helping to curb production and concerns there could be further unrest in top producer Ivory Coast.

“We expect some pick up in demand towards the middle of the calendar year due to lower prices,” said Carlos Mera, senior commodity analyst at Rabobank.

New York cocoa futures fell by 33 percent in 2016, the biggest annual loss since 1999, and have fallen a further 4 percent so far this year.

The decline was driven partly by an anticipated swing from a global deficit in the 2015/16 season (October/September) to an expected surplus in 2016/17.

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crude oil futures quotes

crude oil futures quotes

February 2nd, 2017

Crude oil futures were higher during North American morning hours on Thursday, hitting the strongest level in about a month as traders cheered signs that global supply was beginning to tighten in wake of a planned agreement by major crude producers to cut output.

Crude oil for March delivery on the New York Mercantile Exchange rose to a daily peak of $54.34 a barrel, the most since January 3.

It was last at $54.10 by 9:50AM ET (14:50GMT), up 21 cents, or about 0.4%, after jumping $1.07, or around 2%, a day earlier.

Elsewhere, Brent oil for April delivery on the ICE Futures Exchange in London added 29 cents, or 0.5%, to $57.09 a barrel. Futures touched $57.45 earlier, a level not seen since January 6.

On Tuesday, London-traded Brent rallied $1.22, or 2.2%, after data showed that Russian oil output shrank by 100,000 barrel per day in January, adding to signs that major oil producers are sticking to their pledge to cut back output.

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cocoa futures news

cocoa futures news

January 18th, 2018

London cocoa futures rose on Wednesday, lifted by a weaker pound and renewed concerns over unrest in top producer Ivory Coast.

The March London cocoa contract was up 22 pounds, or 1.2 percent, at 1,814 pounds a tonne by 1312 GMT.

Prices were supported by a weaker pound, which fell back after making its biggest one-day gain since at least 1998 in the previous session.

The market was also keeping a close watch on unrest in the Ivory Coast.

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Cocoa futures best bet among softs

On January 11, 2017, in cocoa futures trading news report, by Infinity Trading
cocoa options

cocoa options

January 11th, 2017

Cocoa looks the best bet among soft commodities for price rises, veteran analyst Judith Ganes Chase said, warning of “somewhat bearish” dynamics in coffee, and cotton prices that are already “too attractive” for growers.

Ms Ganes Chase named cocoa futures – which touched $2,121 a tonne in New York in late December, the lowest for a spot contract since March 2013 – as her “favoured pick” among soft commodities “as a market that has room to climb”.

“The cocoa market remains at low levels relative to the rest of the softs complex and would seem to have fundamentals that are not quite as bearish as market action suggested,” she said.

While acknowledging firm expectations for cocoa output in Ivory Coast, the top producer, saying that “there is no anecdotal evidence to believe the crop will miss production targets”, Ms Ganes Chase flagged potential support to prices from demand.

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cocoa futures news

cocoa futures news

January 6th, 2017

Cocoa futures prices rose on Friday as disgruntled soldiers seized control of the second largest city in the world’s top grower Ivory Coast, prompting a wave of short covering, though the New York market turned lower along with the weak British pound.

Sugar and coffee futures eased.

March London cocoa settled up 12 pounds, or 0.7 percent, at 1,821 pounds per tonne, after surging 2.2 percent to a two-week high at 1,848 pounds following the reports from Ivory Coast.

Unrest in Ivory Coast appeared to be spreading with reports that gunfire had erupted in the western cocoa growing region of Daloa, hours after soldiers demanding salary increases seized the second largest city, Bouake.

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commodity investing 101

commodity investing 101

January 3rd, 2017

Hedge funds approached the end of 2016 on a bearish note in agricultural commodities, cutting bets on price rises for a fourth successive week, as they stretched to a record a selling spree in softs such as cocoa and coffee.

Managed money, a proxy for speculators, cut its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to sugar, by 37,457 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows.

The selldown reduced the net long – the extent to which long bets, which profit when values rise, exceed short holdings, which benefit when prices fall – to the lowest in two months.

And it included bearish positioning in both grains, in which hedge funds returned to a net short position, as well as in New York-traded soft commodities, which also include cotton and sugar.

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cocoa options

cocoa options

December 22nd, 2016

Cocoa speculators have turned net-short on cocoa futures for the first time in years – just as prices are testing major long-term support.

If you’re still looking for last minute gift ideas for that trader on your list, a few shares or contracts in cocoa may do the trick. That’s because the sweet commodity may be well-positioned for a bounce following a 12-month rout. First, let’s look at prices as determined by the iPath Bloomberg Cocoa Subindex Total Return SM Index ETN, ticker, NIB. NIB is presently testing the 27-28 level that represents the fund’s all-time lows set in 2011-2013.

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Cocoa futures rise from multi-year lows

On December 20, 2016, in cocoa futures trading news report, by Infinity Trading
cocoa futures news

cocoa futures news

December 20th, 2016

Cocoa futures prices were boosted on Monday by news that speculators had increased further an already large short position, prompting some to expect there may be scope for a short-term rebound in prices. May New York cocoa was up $51, or 0.85 percent, at $2,257 a tonne at 1500 GMT. The second position has recovered some ground after dipping to a low of $2,144 a week ago, its weakest since July 2013.

Speculators boosted bearish bets on cocoa to a 4-1/2 year high in the week to Dec. 13, US Commodity Futures Trading Commission data showed on Friday. Dealers said the scope for further losses may also be limited after a prolonged slide, with the market on course to fall nearly 30 percent in 2016.

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cocoa options

cocoa options

December 13, 2016

Raw sugar futures fell into bear market territory Tuesday as traders exiting long positions largely looked past a boost to gasoline prices in Brazil.

Raw sugar for March delivery dropped 3.4% to end at 18.60 cents a pound on the ICE Futures U.S. exchange, the lowest close for the most active contract since June 2.

The sugar market is still heavily long, with the bulls outweighing the bears by 174,459 contracts as of last Tuesday, according to U.S. Commodity Futures Trading Commission data. At the close, the market was down 22% from its most recent high reached Oct. 5, pushing it into bear market territory.

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