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.

Continue reading »

cocoa options

cocoa options

December 22nd, 2016

Cocoa speculators have turned net-short on cocoa futures for the first time in years – just as prices are testing major long-term support.

If you’re still looking for last minute gift ideas for that trader on your list, a few shares or contracts in cocoa may do the trick. That’s because the sweet commodity may be well-positioned for a bounce following a 12-month rout. First, let’s look at prices as determined by the iPath Bloomberg Cocoa Subindex Total Return SM Index ETN, ticker, NIB. NIB is presently testing the 27-28 level that represents the fund’s all-time lows set in 2011-2013.

Continue reading »

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.

Continue reading »

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.

Continue reading »

cocoa futures brokers

cocoa futures brokers

November 27th, 2015

Cocoa production outstripped demand last season, according to the International Cocoa Organisation, which previously saw a deficit in stocks.

And production in Ghana is forecast to recover this year, thanks to a government drive for improvements.

For the 2014-15 season, which recently came to an end in the key West African growing region, the ICCO saw global cocoa production outpacing supply by 36,000 tonnes, where it had previously seen a shortfall of 15,000 tonnes.

Continue reading »

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 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.

Continue reading »

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.”

Continue reading »