July ICE NY cocoa (CCN26) on Monday closed up +69 (+1.83%), and July ICE London cocoa #7 (CAN26) closed up +58 (+2.00%). Cocoa prices settled higher on Monday as short covering emerged after cocoa farmers in the Ivory Coast reported that heavy rain and winds had blown away young flower buds and damaged cocoa trees.
An excessively short position by funds could exacerbate any short-covering rally in NY cocoa. Last Friday’s weekly Commitment of Traders (COT) report showed money managers boosted their short positions in NY cocoa by 2,963 in the week ended June 2 to 21,111 net short positions, the most in more than 3 years.
