cocoa options

cocoa options

December 9th, 2016

Cocoa futures dropped to the lowest level in three-and-a-half years, headed for a sixth session of losses as more predictions of a global surplus hit the market.

Cocoa for March dropped 2.2% to $2,223 a ton on the ICE Futures U.S. exchange, on track for its lowest close since July 10, 2013.

“More and more observers are seeing a sizeable oversupply,” Commerzbank said in a note.

Judith Ganes Chase, president of research firm J. Ganes Consulting, said traders should be cautious about assuming that big crops in cocoa will lead to oversupply. She said she anticipates demand will recover as processing margins improve under lower prices.

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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 futures brokers

cocoa futures brokers

February 15th, 2016

Cocoa futures are set to rally back past the $3,000-a-tonne level, broker VSA Capital said.

After rising through 2015, cocoa futures entered a sharp sell-off in 2016, with the front-month New York contract down more than 10% since the start of this year.

But VSA said that “the inherent structure of the industry lends itself to a general bullish environment over the coming years”.

“In the shorter-term, increasing El Nino-related concerns over the mid-crop […] in the two largest producers, Ivory Coast and Ghana, could certainly push the US benchmark cocoa price back through $3,000 a tonne, said Ed Hugo, of VSA Capital.  

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cocoa options

cocoa options

January 22nd, 2016

Cocoa markets rose, as some strong data on Asian grinding counteracted disappointment at data for North America showing an unexpectedly large drop in volumes.

Cocoa grinding, the processing of beans into butter and powder, is treated as a proxy for demand.

The Cocoa Association of Asia reported cocoa grinding in Malaysia, Singapore and Indonesia, the continent’s main processors, at 161,227 tonnes in the last three months of 2015, up 14% year-on-year.

This still leaves grinding down 2.8% over the full calendar year, at 597,452 tonnes.

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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

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.

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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.

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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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