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

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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cocoa futures news

cocoa futures news

December 9th, 2016

Plummeting cocoa prices could spur demand, with processing margins at their highest level in years, analyst Judith Ganes-Chase said.

Ms Ganes-Chase said market were ‘underestimating’ the scale of current cocoa processing, suggesting the size of this year’s market surplus may less than thought.

Cocoa prices in New York are plumbing their lowest level in over three years, under pressure from the big crop in West Africa.

“More and more observers are expecting to see a sizeable oversupply in the current 2016-17 crop year,” said Commerzbank on Friday.

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cocoa futures brokers

cocoa futures brokers

February 25, 2016

Cocoa prices rose Thursday as traders expected recent dry weather to slash production for the upcoming West African smaller midcrop.

Cocoa for May was up 1.3%, at $2,963 a ton, on the ICE Futures U.S. exchange.

In a note, trading firm Cocoanect, based in Rotterdam, Netherlands, said it expects the stunted beans coming out of the tail end of the main cocoa harvest to foretell losses for the upcoming midcrop because of a lack of rain and seasonal winds in the growing areas.

The firm also said, however, that cocoa beans from the main harvest–which is now winding down–are arriving at ports in Ivory Coast, the crop’s largest grower, at the same rate as last year and purchases are ahead by 100,000 metric tons in Ghana, the world’s second largest grower. Traders had expected the dry weather to hurt the main crop, the firm said.

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cocoa options

cocoa options

January 22nd, 2016

Cocoa markets rose, as some strong data on Asian grinding counteracted disappointment at data for North America showing an unexpectedly large drop in volumes.

Cocoa grinding, the processing of beans into butter and powder, is treated as a proxy for demand.

The Cocoa Association of Asia reported cocoa grinding in Malaysia, Singapore and Indonesia, the continent’s main processors, at 161,227 tonnes in the last three months of 2015, up 14% year-on-year.

This still leaves grinding down 2.8% over the full calendar year, at 597,452 tonnes.

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cocoa futures brokers

cocoa futures brokers

January 7th, 2016

Cocoa futures continued to plummet, amid volatile and high volume trading, amid ongoing uncertainty about West African production prospects.

Front-month cocoa futures fell nearly 3% in morning deals in New York, to $2,898 a tonne, extending gains this week nearly to 10% .

The selldown, which has taken prices 15% below a five-year high a month ago, contrasts with a strong performance by the bean last year, over which it was one of the few commodities to post gains.

Gains of 10% in New York over the year, and  of 14% in London, made it “the outstanding soft commodity in 2015,” Ecobank said.

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cocoa futures brokers

cocoa futures brokers

July 21st, 2015

Citigroup recommends taking short position
in New York-traded cocoa futures for Dec. delivery, w/ price
target of $3,000/mt into expiry, analysts incl. Aakash Doshi and
Edward Morse wrote in a note dated Monday.

* NOTE: Dec. contract was at $3,352 on Tuesday
* 14-day RSI indicates prices may have risen too quickly
* Global slowdown in cocoa grindings has been prompted by high
cocoa, butter prices in recent yrs, underwhelming economic
growth in OECD, China
* Global grinding likely to disappoint further
* Supply situation appears to be improving “modestly” in
West Africa; Citigroup forecasts cocoa surplus of >110k t in
2015-16

- By Rudy Ruitenberg Bloomberg.

 

cocoa futures brokers

cocoa futures brokers

October 23rd, 2014

Cocoa processing in Asia fell in the third quarter as futures soared to the highest level in more than three years, damping profits for grinders.

The grind, an indication of demand, declined 5.9 percent to 151,643 metric tons in the three months ended Sept. 30 from 161,097 tons a year earlier, the Singapore-based Cocoa Association of Asia said in an e-mailed statement today. The data are for Malaysia and members in Singapore and Indonesia. The number, which includes grinds from two more factories, was down 6.3 percent from the previous quarter. Beans are processed into butter and powder to make chocolate.

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cocoa futures quotes

cocoa futures quotes

September 23rd, 2014

Forecasts for the Ebola disease to spread faster in West Africa than earlier estimates are sending cocoa prices higher as concerns mount that shipments from Ivory Coast, the world’s top producer, may be disrupted.

Cocoa futures reached to a 42-month month high before erasing gains. Without better containment of the Ebola outbreak, the number of cases in Liberia and Sierra Leone may jump to 550,000 to 1.4 million by January, according to an estimate published today by the U.S. Centers for Disease Control and Prevention. On Sept. 18, the group advised Ivory Coast to establish a command center and train medical staff to deal with the disease.

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cocoa futures

cocoa futures

July 30th, 2014

Cocoa futures rose to the highest price in almost three years in London on speculation chocolate manufacturers need to stock up with West Africa supplies limited until new harvests start in October.

Inventories are probably only enough to meet demand for six months and the industry usually needs seven to eight months of cover, according to Eric Sivry, head of agriculture options brokerage at Marex Spectron Group in London. Inventories in warehouses monitored by ICE Futures U.S. dropped 4 percent this month, the third consecutive decline.

“The industry is not enough covered,” Sivry said. “This is prompting some market participants to leapfrog the industry and push prices higher.”

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