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Yahoo
a day ago
- Business
- Yahoo
Signs of Smaller Ivory Coast Cocoa Exports Boost Cocoa Prices
September ICE NY cocoa (CCU25) on Monday closed up +189 (+2.27%), and September ICE London cocoa #7 (CAU25) closed up +105 (+1.91%). Cocoa prices rallied sharply to 3-week highs Monday on concerns that a slowdown in the pace of Ivory Coast cocoa exports will tighten global supplies. Monday's government data showed that Ivory Coast farmers shipped 1.75 MMT of cocoa to ports this marketing year from October 1 to July 27, up +6.1% from last year but down from the much larger +35% increase seen in December. More News from Barchart Does the 2025 Corn Crop Have a Pollination Problem? Weather Shocks vs. Oversupply: Are You Trading SRW Wheat's Next Big Move? Adverse Brazilian Weather and Tariff Concerns Boost Coffee Prices Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Concerns about dry weather in West Africa are also underpinning cocoa prices. According to the European Centre for Medium-Range Weather Forecasts, rainfall in the Ivory Coast and Ghana this season remains below the 30-year average, and combined with high temperatures, risks hurting cocoa pod development for the main crop harvest that starts in October. A significant short position by commodity funds in London cocoa futures raises the potential for short covering. Last Friday, ICE Futures Europe reported that funds boosted their net-short London cocoa positions by 1,904 to 8,265 short positions the week ended July 22, the most in more than two years. Concerns over tepid chocolate demand are bearish for cocoa prices. Last Tuesday, chocolate maker Lindt & Spruengli AG lowered its margin guidance for the year due to a larger-than-expected decline in first-half chocolate sales. Also, chocolate maker Barry Callebaut AG reduced its sales volume guidance earlier this month for a second time in three months, citing persistently high cocoa prices. The company projects a decline in full-year sales volume and reported a -9.5% drop in its sales volume for the March-May period, the largest quarterly decline in a decade. Cocoa prices sold off earlier this month, with NY cocoa sinking to an 8-month nearest-futures low and London cocoa slumping to a 17-month nearest-futures low. Weakness in global cocoa demand has hammered prices. The European Cocoa Association reported on July 17 that Q2 European cocoa grindings fell by -7.2% y/y to 331,762 MT, a bigger decline than expectations of -5% y/y. Also, the Cocoa Association of Asia reported that Q2 Asian cocoa grindings fell -16.3% y/y to 176,644 MT, the smallest amount for a Q2 in 8 years. North American Q2 cocoa grindings fell -2.8% y/y to 101,865 MT, which was a smaller decline than the declines seen in Asia and Europe. In a bearish development, ICE-monitored cocoa inventories held in US ports reached a 10.5-month high of 2,368,141 bags last Tuesday. Higher cocoa production by Ghana is bearish for cocoa prices. On July 1, the Ghana Cocoa Board projected the 2025/26 Ghana cocoa crop would increase by +8.3% y/y to 650,000 from 600,000 MT in 2024/25. Ghana is the world's second-largest cocoa producer. Cocoa prices have support from quality concerns regarding the Ivory Coast's mid-crop cocoa, which is currently being harvested through September. Cocoa processors are complaining about the quality of the crop and have rejected truckloads of Ivory Coast cocoa beans. Processors reported that about 5% to 6% of the mid-crop cocoa in each truckload is of poor quality, compared with 1% during the main crop. According to Rabobank, the poor quality of the Ivory Coast's mid-crop is partly attributed to late-arriving rain in the region, which limited crop growth. The mid-crop is the smaller of the two annual cocoa harvests, which typically starts in April. The average estimate for this year's Ivory Coast mid-crop is 400,000 MT, down -9% from last year's 440,000 MT. On May 30, the International Cocoa Organization (ICCO) revised its 2023/24 global cocoa deficit to -494,000 MT from a February estimate of -441,000 MT, the largest deficit in over 60 years. ICCO said 2023/24 cocoa production fell by 13.1% y/y to 4.380 MMT. ICCO stated that the 2023/24 global cocoa stocks-to-grindings ratio declined to a 46-year low of 27.0%. Looking ahead to 2024/25, ICCO on February 28 forecasted a global cocoa surplus of 142,000 MT for 2024/25, the first surplus in four years. ICCO also projected that 2024/25 global cocoa production will rise +7.8% y/y to 4.84 MMT. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Cocoa Prices Jump on Fears of Tighter Supplies
September ICE NY cocoa (CCU25) on Wednesday closed up +291 (+3.57%), and September ICE London cocoa #7 (CAU25) closed up +114 (+2.13%). Cocoa prices rallied sharply on Wednesday, posting 1.5-week highs. Concerns that a slowdown in the pace of Ivory Coast cocoa exports will tighten global supplies are underpinning prices. Monday's government data showed that Ivory Coast farmers shipped 1.74 MMT of cocoa to ports this marketing year from October 1 to July 20, up +6.1% from last year but down from the much larger +35% increase seen in December. Wednesday's rally in the British pound (^GBPUSD) to a 1.5-week high limited gains in London cocoa prices. The stronger pound undercuts cocoa that is priced in terms of sterling. More News from Barchart Coffee Prices Rise on Frost Threats in Brazil Frost Threats in Brazil Push Coffee Prices Sharply Higher Signs of Weak Chocolate Demand Undercut Cocoa Prices Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! An excessively short position by commodity funds in London cocoa futures may add fuel to a short-covering rally. Last Friday, ICE Futures Europe reported that funds boosted their net-short London cocoa positions by 1,010 to 6,361 short positions the week ended July 15, the most in more than two years. Cocoa prices sold off last week, with NY cocoa sinking to an 8-month nearest-futures low last Thursday and London cocoa slumping to a 17-month nearest-futures low. Weakness in global cocoa demand has hammered prices. The European Cocoa Association reported last Thursday that Q2 European cocoa grindings fell by -7.2% y/y to 331,762 MT, a bigger decline than expectations of -5% y/y. Also, the Cocoa Association of Asia reported that Q2 Asian cocoa grindings fell -16.3% y/y to 176,644 MT, the smallest amount for a Q2 in 8 years. North American Q2 cocoa grindings fell -2.8% y/y to 101,865 MT, which was a smaller decline than the declines seen in Asia and Europe. Chocolate demand concerns are weighing on cocoa prices after chocolate maker Lindt & Spruengli AG on Tuesday lowered its margin guidance for the year due to a larger-than-expected decline in first-half chocolate sales. Also, chocolate maker Barry Callebaut AG reduced its sales volume guidance earlier this month for a second time in three months, citing persistently high cocoa prices. The company projects a decline in full-year sales volume and reported a 9.5% drop in its March-May sales volume, the largest quarterly decline in a decade. In a bearish development, ICE-monitored cocoa inventories held in US ports reached a 10.5-month high of 2,368,141 bags on Tuesday. Higher cocoa production by Ghana is bearish for cocoa prices. On July 1, the Ghana Cocoa Board projected the 2025/26 Ghana cocoa crop would increase by +8.3% y/y to 650,000 from 600,000 MT in 2024/25. Ghana is the world's second-largest cocoa producer. Cocoa prices have support from quality concerns regarding the Ivory Coast's mid-crop cocoa, which is currently being harvested through September. Cocoa processors are complaining about the quality of the crop and have rejected truckloads of Ivory Coast cocoa beans. Processors reported that about 5% to 6% of the mid-crop cocoa in each truckload is of poor quality, compared with 1% during the main crop. According to Rabobank, the poor quality of the Ivory Coast's mid-crop is partly attributed to late-arriving rain in the region, which limited crop growth. The mid-crop is the smaller of the two annual cocoa harvests, which typically starts in April. The average estimate for this year's Ivory Coast mid-crop is 400,000 MT, down -9% from last year's 440,000 MT. On May 30, the International Cocoa Organization (ICCO) revised its 2023/24 global cocoa deficit to -494,000 MT from a February estimate of -441,000 MT, the largest deficit in over 60 years. ICCO said 2023/24 cocoa production fell by 13.1% y/y to 4.380 MMT. ICCO stated that the 2023/24 global cocoa stocks-to-grindings ratio declined to a 46-year low of 27.0%. Looking ahead to 2024/25, ICCO on February 28 forecasted a global cocoa surplus of 142,000 MT for 2024/25, the first surplus in four years. ICCO also projected that 2024/25 global cocoa production will rise +7.8% y/y to 4.84 MMT. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
7 days ago
- Business
- Yahoo
Signs of Weak Chocolate Demand Undercut Cocoa Prices
September ICE NY cocoa (CCU25) on Tuesday closed down -7 (-0.09%), and September ICE London cocoa #7 (CAU25) closed up +111 (+2.12%). Cocoa prices settled mixed on Tuesday. NY cocoa gave up an early advance Tuesday and turned lower, while London cocoa fell from its best levels due to concerns about cocoa demand. Chocolate maker Lindt & Spruengli AG lowered its margin guidance for the year on Tuesday due to a larger-than-expected decline in first-half chocolate sales. More News from Barchart Brazil Coffee Harvest Pressures Slam Coffee Prices Brazil Coffee Harvest Pressures Hammer Prices Cocoa Prices Rally as the Pace of Ivory Coast Cocoa Exports Slows Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! Cocoa prices initially moved higher on Tuesday, supported by carryover from Monday, when coffee found support from a slower pace of cocoa exports from the Ivory Coast. Monday's government data showed that Ivory Coast farmers shipped 1.74 MMT of cocoa to ports this marketing year from October 1 to July 20, up +6.1% from last year but down from the much larger +35% increase seen in December. An excessive short position by commodity funds may add fuel to a short-covering rally. Last Friday, ICE Futures Europe reported that funds boosted their net-short London cocoa positions by 1,010 to 6,361 short positions the week ended July 15, the most in more than two years. Cocoa prices sold off last week, with NY cocoa sinking to an 8-month nearest-futures low last Thursday and London cocoa slumping to a 17-month nearest-futures low. Weakness in global cocoa demand has hammered prices. The European Cocoa Association reported last Thursday that Q2 European cocoa grindings fell by -7.2% y/y to 331,762 MT, a bigger decline than expectations of -5% y/y. Also, the Cocoa Association of Asia reported that Q2 Asian cocoa grindings fell -16.3% y/y to 176,644 MT, the smallest amount for a Q2 in 8 years. North American Q2 cocoa grindings fell -2.8% y/y to 101,865 MT, which was a smaller decline than the declines seen in Asia and Europe. Demand concerns are weighing on cocoa prices after chocolate maker Barry Callebaut AG reduced its sales volume guidance earlier this month for a second time in three months, citing persistently high cocoa prices. The company projects a decline in full-year sales volume and said there was a -9.5% drop in its March-May sales volume, the largest quarterly drop in a decade. In a bearish factor, ICE-monitored cocoa inventories held in US ports climbed to a 10.5-month high of 2,368,141 bags on Tuesday. Higher cocoa production by Ghana is bearish for cocoa prices. On July 1, the Ghana Cocoa Board projected the 2025/26 Ghana cocoa crop would increase by +8.3% y/y to 650,000 from 600,000 MT in 2024/25. Ghana is the world's second-largest cocoa producer. Cocoa prices have support from quality concerns regarding the Ivory Coast's mid-crop cocoa, which is currently being harvested through September. Cocoa processors are complaining about the quality of the crop and have rejected truckloads of Ivory Coast cocoa beans. Processors reported that about 5% to 6% of the mid-crop cocoa in each truckload is of poor quality, compared with 1% during the main crop. According to Rabobank, the poor quality of the Ivory Coast's mid-crop is partly attributed to late-arriving rain in the region, which limited crop growth. The mid-crop is the smaller of the two annual cocoa harvests, which typically starts in April. The average estimate for this year's Ivory Coast mid-crop is 400,000 MT, down -9% from last year's 440,000 MT. On May 30, the International Cocoa Organization (ICCO) revised its 2023/24 global cocoa deficit to -494,000 MT from a February estimate of -441,000 MT, the largest deficit in over 60 years. ICCO said 2023/24 cocoa production fell by 13.1% y/y to 4.380 MMT. ICCO stated that the 2023/24 global cocoa stocks-to-grindings ratio declined to a 46-year low of 27.0%. Looking ahead to 2024/25, ICCO on February 28 forecasted a global cocoa surplus of 142,000 MT for 2024/25, the first surplus in four years. ICCO also projected that 2024/25 global cocoa production will rise +7.8% y/y to 4.84 MMT. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
NY Cocoa Erases Early Gains on Signs of Weak Chocolate Demand
September ICE NY cocoa (CCU25) today is down -17 (-0.21%), and September ICE London cocoa #7 (CAU25) is up +90 (+1.72%). Cocoa prices today are mixed. NY cocoa gave up an early advance today and turned lower, while London cocoa fell from its best levels due to concerns about cocoa demand. Chocolate maker Lindt & Spruengli AG today lowered its margin guidance for the year due to a larger-than-expected decline in first-half chocolate sales. More News from Barchart Brazil Coffee Harvest Pressures Slam Coffee Prices Brazil Coffee Harvest Pressures Hammer Prices Cocoa Prices Rally as the Pace of Ivory Coast Cocoa Exports Slows Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Cocoa prices today initially moved higher on carryover support from Monday, when coffee found support from a slower pace of cocoa exports from the Ivory Coast. Monday's government data showed that Ivory Coast farmers shipped 1.74 MMT of cocoa to ports this marketing year from October 1 to July 20, up +6.1% from last year but down from the much larger +35% increase seen in December. An excessive short position by commodity funds may add fuel to a short-covering rally. Last Friday, ICE Futures Europe reported that funds boosted their net-short London cocoa positions by 1,010 to 6,361 short positions the week ended July 15, the most in more than two years. Cocoa prices sold off last week, with NY cocoa sinking to an 8-month nearest-futures low last Thursday and London cocoa slumping to a 17-month nearest-futures low. Weakness in global cocoa demand has hammered prices. The European Cocoa Association reported last Thursday that Q2 European cocoa grindings fell by -7.2% y/y to 331,762 MT, a bigger decline than expectations of -5% y/y. Also, the Cocoa Association of Asia reported that Q2 Asian cocoa grindings fell -16.3% y/y to 176,644 MT, the smallest amount for a Q2 in 8 years. North American Q2 cocoa grindings fell -2.8% y/y to 101,865 MT, which was a smaller decline than the declines seen in Asia and Europe. Demand concerns are weighing on cocoa prices after chocolate maker Barry Callebaut AG reduced its sales volume guidance earlier this month for a second time in three months, citing persistently high cocoa prices. The company projects a decline in full-year sales volume and said there was a -9.5% drop in its March-May sales volume, the largest quarterly drop in a decade. In a bearish factor, ICE-monitored cocoa inventories held in US ports climbed to a 10-month high of 2,363,861 bags on June 18 and were just below that high at 2,351,269 bags as of Monday. Higher cocoa production by Ghana is bearish for cocoa prices. On July 1, the Ghana Cocoa Board projected the 2025/26 Ghana cocoa crop would increase by +8.3% y/y to 650,000 from 600,000 MT in 2024/25. Ghana is the world's second-largest cocoa producer. Cocoa prices have support from quality concerns regarding the Ivory Coast's mid-crop cocoa, which is currently being harvested through September. Cocoa processors are complaining about the quality of the crop and have rejected truckloads of Ivory Coast cocoa beans. Processors reported that about 5% to 6% of the mid-crop cocoa in each truckload is of poor quality, compared with 1% during the main crop. According to Rabobank, the poor quality of the Ivory Coast's mid-crop is partly attributed to late-arriving rain in the region, which limited crop growth. The mid-crop is the smaller of the two annual cocoa harvests, which typically starts in April. The average estimate for this year's Ivory Coast mid-crop is 400,000 MT, down -9% from last year's 440,000 MT. On May 30, the International Cocoa Organization (ICCO) revised its 2023/24 global cocoa deficit to -494,000 MT from a February estimate of -441,000 MT, the largest deficit in over 60 years. ICCO said 2023/24 cocoa production fell by 13.1% y/y to 4.380 MMT. ICCO said the 2023/24 global cocoa stocks/grindings ratio fell to a 46-year low of 27.0%. Looking ahead to 2024/25, ICCO on February 28 forecasted a global cocoa surplus of 142,000 MT for 2024/25, the first surplus in four years. ICCO also projected that 2024/25 global cocoa production will rise +7.8% y/y to 4.84 MMT. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
