December ICE NY cocoa (CCZ26) closed up +2 (+0.03%) on Wednesday, and December ICE London cocoa #7 (CAZ26) closed up +25 (+0.58%).
Cocoa prices extended this week’s rally on Wednesday, with NY cocoa posting a 1-month high and London cocoa a 6-week high. Stronger cocoa demand is bullish for prices after the Malaysian Cocoa Board and Cocoa Manufacturers Group reported Wednesday that Malaysia Q3 cocoa grindings jumped +47% y/y to 89,414 MT. Global Q3 cocoa grindings will be reported on Thursday, with Asian grindings expected to rise +15% y/y, European grindings to decline -3.9% y/y, and North American grindings to remain largely unchanged. Cocoa gains were limited on Wednesday after the dollar index ($DXY) rallied to a 1.5-year high.
