May ICE NY cocoa (CCK25) Tuesday closed up +194 (+2.48%), and May ICE London cocoa #7 (CAK25) closed up +74 (+1.21%).
Cocoa prices on Tuesday settled moderately higher as a slide in the dollar index (DXY00) to 5-month low sparked short covering in cocoa futures. Cocoa prices have been on the defensive over the past month, with NY cocoa falling to a 4-month low last Friday and London cocoa posting a 4-month low Monday on an improving supply outlook. On February 28, the International Cocoa Organization (ICCO) forecasted a global cocoa surplus of 142,000 MT for 2024/25, the first surplus in 4 years. ICCO also projected that 2024/25 global cocoa production will rise +7.8% y/y to 4.84 MMT.
