cocoa futures news

cocoa futures news

January 18th, 2018

London cocoa futures rose on Wednesday, lifted by a weaker pound and renewed concerns over unrest in top producer Ivory Coast.

The March London cocoa contract was up 22 pounds, or 1.2 percent, at 1,814 pounds a tonne by 1312 GMT.

Prices were supported by a weaker pound, which fell back after making its biggest one-day gain since at least 1998 in the previous session.

The market was also keeping a close watch on unrest in the Ivory Coast.

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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.

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Cocoa futures rise from multi-year lows

On December 20, 2016, in cocoa futures trading news report, by Infinity Trading
cocoa futures news

cocoa futures news

December 20th, 2016

Cocoa futures prices were boosted on Monday by news that speculators had increased further an already large short position, prompting some to expect there may be scope for a short-term rebound in prices. May New York cocoa was up $51, or 0.85 percent, at $2,257 a tonne at 1500 GMT. The second position has recovered some ground after dipping to a low of $2,144 a week ago, its weakest since July 2013.

Speculators boosted bearish bets on cocoa to a 4-1/2 year high in the week to Dec. 13, US Commodity Futures Trading Commission data showed on Friday. Dealers said the scope for further losses may also be limited after a prolonged slide, with the market on course to fall nearly 30 percent in 2016.

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Cocoa Futures Market Attempts Rally

On December 12, 2016, in cocoa futures trading news report, by Infinity Trading
cocoa options

cocoa options

December 12th, 2016

Cocoa was on track to have its first day of gains in seven sessions Monday as traders reentered the market to snatch up futures at cheaper levels.

Cocoa for March delivery rose 2.5% to $2,225 a ton on the ICE Futures U.S. exchange, bouncing off a three-and-a-half year low reached Friday.

As of last Tuesday, hedge funds and other money managers were the least bullish they’ve been about the cocoa market since July 24, 2012, with the bulls outweighing the bears by 4,908 contracts, according to data from the U.S. Commodity Futures Trading Commission.

Analysts say the cocoa market is moving from a production surplus to a production deficit year with higher prices for farmers in West Africa helping to driving production at the same time that weather conditions have improved for developing crops.

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cocoa futures news

cocoa futures news

November 23rd, 2016

Speculators, who have been big players in ag markets such as soybeans and sugar this year, will remain “quite active” in 2017, Rabobank said – naming cocoa as its most bullish bet for next year, and coffee the most bearish.

The appeal of ags to hedge funds “is unlikely to change in 2017″, Rabobank said, citing the quest by investors for yield at a time of low borrowing costs.

“Interest rates are expected to rise only very slowly, keeping investors looking for higher returns,” the bank said, adding that index funds may also “be back in the market toward the second half of next year”.

“The interest in commodity index funds, which offer a hedge against inflation, may be rekindled if fear of inflation reappear,” with Rabobank noting “a few signs”, from the likes of bond market spreads, that the pace of global price rises may “slightly increase” next year.

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cocoa futures news

cocoa futures news

June 1st, 2016

Cocoa plantations in Ghana are “in dire need of rainfall”, thanks to sustained West African dryness which threatening both quality and production in Ivory Coast too, the International Cocoa Organization warned.

The ICCO – expanding on an upgrade late on Tuesday by 67,000 tonnes, to 180,000 tonnes, in its forecast for the world cocoa production deficit in 2016-17 – said that the revision reflected largely weaker harvest prospects in West Africa, which is responsible for more than 70% of global output.

“Extreme weather conditions, resulting from the severe Harmattan winds within the West African region, combined with the impact of El Niño, have negatively affected the 2015-16 harvests,” the ICCO said.

In Ivory Coast, the Harmattan – a hot and dry wind blowing in from the Sahara, and which has a history of hurting cocoa yields – is said “to be among the strongest in three decades”.

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cocoa options

cocoa options

April 22nd, 2016

Cocoa futures hit fresh 2016 highs, after Asian grinders reported higher-than-expected volumes.

Asian cocoa grinding was up 2.9% in the first three months to 2016, compared to the same time last year, according to data from the Cocoa Association of Asia (CAA).

Grinding, which is treated as a proxy for consumer demand, came in at at 148,911 tonnes.

This was better than market expectations, which pointed to an increase of around 1%.

Cocoa Futures: No drop in Indonesia

Malaysia, Asia’s second-largest cocoa processor, had already reported an increase in grind of 4%.

But markets were uncertain whether that increase represented a real uptick in demand, or simply a shifting of volumes away from Indonesia, the top-ranked grinder.

Friday’s data release makes it clear that Indonesia also saw rising volumes.

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cocoa futures news

cocoa futures news

November 20th, 2015

Cocoa prices climbed to the highest in more than four years as dryness in Indonesia and slowing deliveries in Ivory Coast added to concerns about supply.

The’ll probably be a global deficit of about 150,000 metric tons of cocoa this season, according to Rabobank International. El Nino is parching crops in Indonesia, the third-biggest grower, and dryness earlier this year in West Africa means output in top producer Ivory Coast may be smaller than last season, said Carlos Mera Arzeno, an analyst at the bank in London. Cocoa deliveries to Ivory Coast ports slowed in the most recent week.

Ivory Coast deliveries “decelerated faster than the market was expecting,” Mera said. “If we see lower arrivals in the next few weeks, that would be bullish for the market.”

Cocoa for delivery in March rose as much as 1.3 percent to $3,420 a ton on ICE Futures U.S. in New York, the highest level since March 2011. It traded at $3,406 by 7:23 a.m. local time. The commodity has risen 17 percent this year, the biggest gain in the S&P GSCI Index of 24 raw materials.

Port arrivals in Ivory Coast were about 50,000 tons in the week ended Nov. 15, down from 61,000 tons a week earlier, according to a person familiar with government statistics who asked not to be identified because the figures haven’t been published.

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cocoa options

cocoa options

September 30th 2015

Cocoa futures prices will rise as production in the Ivory Coast, world’s largest grower, falls back, Ecobank said.

The Togo-based bank forecast falling cocoa outputs in the Ivory Coast, as well as Nigeria and Cameroon, while the outlook for second-largest grower Ghana is “clouded by uncertainty”.

The four West African countries account for over 70% of the world’s cocoa production between them.

“With global demand recovering and expectations of a global deficit this season, we expect prices to strengthen further,” Ecobank said, noting the potential for price spikes ahead of the new season starting in October, as farmers hold back beans in expectation of higher fixed prices coming season.

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October 21st, 2012

Cocoa futures climbed 4.9% last week amid signs that demand is stronger than many traders and analysts anticipated.

North American and European cocoa associations reported last week that cocoa grindings, or tonnage of cocoa beans ground into powder, met or beat expectations for the third quarter. Cocoa grinds are an important industry measure of consumer demand for chocolate’s main ingredient.

The anemic economic recovery in the U.S. and the protracted debt crisis in Europe had investors worried that demand for cocoa had fallen sharply, market participants said. Those concerns sent futures 14% lower in the six weeks before the grindings data, they added. While the grinding results showed demand was off, traders and analysts said it wasn’t as bad as they thought, touching off last week’s rally.

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