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Barchart
Barchart
Rich Asplund

Cocoa Prices Sharply Higher on Concerns Over Supply Disruptions

May ICE NY cocoa (CCK26) on Monday closed up +112 (+3.52%), and May ICE London cocoa #7 (CAK26) closed up +80 (+3.34%).

Cocoa prices rose sharply on Monday amid concerns over global supply disruptions after Iran on Saturday said the Strait of Hormuz was closed to shipping following the US refusal to lift a naval blockade on Iranian vessels.   The closure of the Strait of Hormuz is supportive for cocoa prices as it has reduced fertilizer supplies, boosted global shipping rates, insurance costs, and fuel prices, thereby raising cocoa importers' costs.

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