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 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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