July ICE NY cocoa (CCN26) today is up +69 (+1.83%), and July ICE London cocoa #7 (CAN26) is up +53 (+1.83%). Cocoa prices are climbing today as short covering emerged after cocoa farmers in the Ivory Coast reported that heavy rain and winds have blown away young flower buds and damaged cocoa trees.
An excessively short position by funds could exacerbate any short-covering rally in NY cocoa. Last Friday’s weekly Commitment of Traders report showed money managers boosted their short positions in NY cocoa by 2,963 in the week ended June 2 to 21,111 net short positions, the most in more than 3 years.
