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Barchart
Barchart
Rich Asplund

Hopes for a Demand Recovery Stokes a Rally in Cocoa Prices

May ICE NY cocoa (CCK26) on Tuesday closed up +279 (+8.51%), and May ICE London cocoa #7 (CAK26) is up +161 (+6.57%).

Cocoa prices rallied sharply on Tuesday to 1.75-month highs on hopes that the recent plunge in prices sparked a rebound in cocoa demand.  On Tuesday, Malaysia reported that Q1 cocoa grindings rose by +8.7% y/y to 91,946 MT.  Q1 European, Asian, and North American cocoa grindings will be reported later this week.  Tuesday's fall in the dollar index ($DXY) to a 6-week low is also supportive for cocoa prices.

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