July ICE NY cocoa (CCN26) today is down -10 (-0.26%), and July ICE London cocoa #7 (CAN26) is down -23 (-0.78%). Cocoa prices gave up an early advance today and turned lower after updated weather forecasts called for drier conditions to move into West Africa at the end of this week. Cocoa prices had moved higher on Monday and early today 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.
