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Barchart
Barchart
Rich Asplund

Cocoa Prices Rebound as Global Demand Not as Weak as Feared

March ICE NY cocoa (CCH26) today is up +104 (+2.09%).  March ICE London cocoa #7 (CAH26) is up +67 (+1.84%).

Cocoa prices are moving higher today as a smaller-than-expected decline in Asian cocoa grindings sparked short covering in cocoa futures.  The Cocoa Association of Asia reported today that Q4 Asian cocoa grindings fell -4.8% y/y to 197, 022 MT, a smaller decline than expectations of 12% y/y.  Also, Q4 North American cocoa grindings rose +0.3% y/y to 103,117 MT, slightly better than expectations of no change.

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