July ICE NY cocoa (CCN26) on Wednesday closed down -74 (-1.93%), and July ICE London cocoa #7 (CAN26) closed down -44 (-1.50%). Cocoa prices settled lower on Wednesday amid forecasts of dry conditions moving into West Africa later this week, which are expected to alleviate current flooding. Cocoa prices had moved higher earlier this week after cocoa farmers in the Ivory Coast reported that heavy rain and winds had blown away young flower buds and damaged cocoa trees.
Last Friday, cocoa prices tumbled to 2-week lows amid rising inventories. ICE cocoa inventories rose to a 1.75-year high of 2,929,074 bags last Friday.
