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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cocoa options

cocoa futures

October 8th, 2013

Cocoa futures reached a 23-month high as ample rains threaten to slow already shrinking supplies from West Africa, the world’s biggest growing region. Orange juice also advanced, while coffee, cotton and sugar slid.

In the year started Oct. 1, cocoa output will trail demand by 173,000 metric tons, followed by a shortage of 113,000 tons the next season, Macquarie Group Ltd. estimates. Growing areas in top producers Ivory Coast and Ghana may get as much as 150 percent of normal rain in October’s second half, slowing the harvest, World Weather Inc. in Overland Park, Kansas, predicts.

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cocoa brokers

cocoa futures

September 12th, 2013

Cocoa demand will exceed supply for a second year in the season that starts Oct. 1 as West African output shrinks and chocolate sales expand to a record.

Production will be 118,000 metric tons smaller than consumption in 2013-14, on top of a shortage of 98,000 tons this year, according to the mean in a Bloomberg survey of nine traders, grinders and analysts. The surplus was 87,000 tons in 2011-12, the International Cocoa Organization estimates. Chocolate sales will rise 6.2 percent to $117 billion next year, researcher Euromonitor International Ltd. forecasts.

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cocoa options

cocoa futures

September 5th, 2013

Cocoa futures swung between gains and losses in New York and London as investors weighed speculation of a shortage this season and the return of rains in West Africa, the main producing region. Sugar rose.

Cocoa growing areas in West Africa are forecast to get rains in the next five days, Kyle Tapley, a meteorologist with MDA Weather Services in Gaithersburg, Maryland, said yesterday. Dryness last month threatened to cut output for next season. Slower bean deliveries to Ivorian ports are fueling speculation of a global shortage in the 2012-13 season ending this month.

“We are still looking at a balanced situation for 2012-13, but there was always a risk for a slight deficit,” Kona Haque, a London-based analyst at Macquarie Group Ltd., said by phone today. “If the mid-crop arrivals are tapering off and turn out to be smaller than expected, we may have to revise the 2012-13 balance down.”

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cocoa commodities

cocoa futures fall

June 4th, 2013

Cocoa futures, down in New York today, are bound to rejoin most other raw materials that have dropped this year as the outlook for crops improves in West Africa, the world’s largest producing region of the beans.

Cocoa traded on ICE Futures U.S. is one of six raw materials that have gained this year as the Standard & Poor’s GSCI gauge of 24 raw materials declined. Rain in West Africa, which accounts for about 70 percent of world output, will help output to exceed demand by 11,000 metric tons in the 12 months started Oct. 1, forecasts London-based Kona Haque, an analyst at Macquarie Group Ltd. (MQG), Australia’s biggest investment bank.

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cocoa futures options

cocoa futures fall

May 22nd, 2013

Cocoa futures fell in London and New York on speculation prices that rallied yesterday climbed too far as rainfall may favor crop development in West Africa, the main growing region. Raw sugar rose in New York.

Cocoa gained 2 percent in London and 1.9 percent in New York yesterday as the pound fell to a six-week low against the dollar after a report showed U.K. inflation slowed more in April than economists forecast. Cocoa growing areas in West Africa got widespread rainfall last week, with the heaviest amounts over southwestern Cameroon and southern Ivory Coast, MDA Weather Services, in Gaithersburg, Maryland, said in a report e-mailed yesterday.

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April 1st, 2013

Cocoa futures rose to a seven-week high on speculation that supplies will be limited from Ivory Coast, the world’s biggest producer. Sugar, cotton, orange juice and coffee gained.

On March 29, Ivory Coast lowered by 3.6 percent the minimum guaranteed price that farmers will get for the mid-crop harvest that starts today, saying the shorter season usually results in smaller beans. From Oct. 1 to March 24, bean deliveries to Ivorian ports slid 1.3 percent, Commodities Risk Analysis in Bethlehem, Pennsylvania, said on March 27.

“This season’s mid-crop production is expected to produce lower quality beans,” and “port arrivals have been running behind schedule,” John Caruso, a senior commodity broker at RJO Futures in Chicago, said in an e-mail.

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February 12th, 2013

Cocoa futures dropped to a 10-month low in London as rain during the dry season boosted crop prospects for harvests in West Africa, the largest growing area. Coffee fell.

Most coastal areas of Ivory Coast and Ghana, which make up 58 percent of global production, will get 5 millimeters to 20 millimeters (0.2 to 0.8 inches) of rainfall through Feb. 19, according to data on the U.S. National Oceanic and Atmospheric Administration’s website today. Cocoa exports from Ivory Coast’s port of San Pedro climbed 33 percent to 275,630 metric tons from the start of the 2012-13 season in October through January, harbor data compiled by Bloomberg show.

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November 14th, 2012

Cocoa futures surged the most in four weeks after the president of Ivory Coast, the world’s largest producer, dissolved the nation’s government.

President Alassane Ouattara dissolved the government after members of the ruling coalition opposed a new law, said Amadou Gon Coulibaly, the general secretary of the presidency. Cocoa climbed to a 32-year high in March 2011 as supplies were disrupted by a civil war. The conflict left at least 3,000 dead following ex-leader Laurent Gbagbo’s refusal to cede power to Alassane Ouattara after a November 2010 election.

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November 12th, 2012

Cocoa Futures – Cocoa grinders are increasing output by the most in two years to meet record demand for chocolate, at a time when declining West African supply means the first shortages of beans in three seasons.

Processing will jump 4.9 percent in the season that began Oct. 1, according to Bethlehem, Pennsylvania-based Commodities Risk Analysis LC, which has tracked the market for 17 years. Chocolate sales will climb 5.7 percent to $108 billion, London- based Euromonitor International Ltd. estimates. Prices will rise as much as 7.8 percent to 1,665 pounds ($2,643) a metric ton in the first half of 2013 in London, according to the mean of 17 analyst estimates compiled by Bloomberg.

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