cocoa futures news

cocoa futures news

March 24th, 2017

Cocoa is the best bet among soft commodities, Commerzbank said, forecasting price rises – in contrast to somewhat bearish expectations for coffee and, especially, sugar futures.

The bank termed “exaggerated… the slump” in New York cocoa futures which took them to $1,881 a tonne last month – a nine-year low on a spot contract basis, and down 45% from a high set in late 2015.

While acknowledging the “huge rise” in world cocoa output in 2016-17 – backed by estimates of a record crop in top producer Cote d’Ivoire – the bank viewed as overplayed ideas voiced by the International Cocoa Organization last week of global production surpluses for years ahead.

“We are sceptical at the moment that ICCO concerns about a period of structural surpluses on the cocoa market are justified.”

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