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Barchart
Barchart
Rich Asplund

Cocoa Prices Retreat on Forecasts for Rain in West Africa

December ICE NY cocoa (CCZ24) on Tuesday closed down -185 (-2.31%).  September ICE London cocoa #7 (CAU24) closed down -547 (-8.71%).

Cocoa prices fell sharply Tuesday, with London cocoa posting a 3-month low.  An improved weather outlook sparked long liquidation in cocoa futures on Tuesday after Maxar Technologies forecasted rain for West Africa over the next week.  Previously, NY cocoa rallied to a 2-month high Monday due to concern that excessively dry conditions in West Africa could curb the region's cocoa production.  Forecaster Maxar Technologies said last week that top cocoa-producing countries Ivory Coast and Ghana had seen a "significant decrease in shower activity" over the past month, leading to below-normal soil moisture and limited crop growth.

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