Cocoa Futures Market Attempts Rally

On December 12, 2016, in cocoa futures trading news report, by Infinity Trading
cocoa options

cocoa options

December 12th, 2016

Cocoa was on track to have its first day of gains in seven sessions Monday as traders reentered the market to snatch up futures at cheaper levels.

Cocoa for March delivery rose 2.5% to $2,225 a ton on the ICE Futures U.S. exchange, bouncing off a three-and-a-half year low reached Friday.

As of last Tuesday, hedge funds and other money managers were the least bullish they’ve been about the cocoa market since July 24, 2012, with the bulls outweighing the bears by 4,908 contracts, according to data from the U.S. Commodity Futures Trading Commission.

Analysts say the cocoa market is moving from a production surplus to a production deficit year with higher prices for farmers in West Africa helping to driving production at the same time that weather conditions have improved for developing crops.

Kyle Tapley, senior agricultural meteorologist at MDA Weather Services in Maryland said the crop world is moving from a strong El Nino year, which brought drought to important commodity growing regions in Brazil and West Africa, into a weak La Nina year, which is helping to move seasonal rains back into key growing regions.

In other markets, raw sugar for March rose 0.2% to 19.27 cents a pound, arabica coffee for March was up 0.9% to $1.406 a pound, frozen concentrated orange juice for January was down 1.6% at $2.0955 a pound and March cotton was flat at 70.82 cents a pound.

- Julie Wernau at Wall St. Journal.