cocoa futures news

cocoa futures news

May 12th, 2017

Commodity players in the exchange traded products market are proving chocaholics.

For 10 consecutive weeks, the investors in exchange traded products, or ETPs, have raised their exposure to cocoa.

That has lifted assets investment in cocoa ETPs to $83m, up from some $27m, according to data from ETF Securities, which claims a 99% share of trading in the exchange traded products in ags in Europe.

That has made the market more valuable than that in corn, one of the biggest markets for futures investors, as well as those in cotton, soybeans and sugar – if lagging the $150m invested in wheat EPTs.

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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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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

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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