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Barchart
Barchart
Rich Asplund

Cocoa Prices Pressured as Supply Fears Wane and Demand Remains Tepid

December ICE NY cocoa (CCZ25) on Monday closed down -26 (-0.44%), and December ICE London cocoa #7 (CAZ25) closed up +23 (+0.56%).

Cocoa prices on Monday settled mixed.  Prices extended their two-month-long decline on Monday, with NY cocoa falling to a 20-month nearest-futures low and London cocoa posting a 20.5-month nearest-futures low.  Cocoa prices remain under pressure after the governments of the Ivory Coast and Ghana recently boosted the amount they pay farmers for their cocoa beans, which is expected to increase sales and cocoa supplies.  Some mild short covering by funds lifted cocoa prices off their lows on Monday, with London cocoa moving into positive territory.

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