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Barchart
Barchart
Rich Asplund

Possible Fertilizer Shortage Sparks Short Covering in Cocoa Futures

May ICE NY cocoa (CCK26) today is up +29 (+0.91%), and May ICE London cocoa #7 (CAK26) is up +17 (+0.72%).

Cocoa prices are moving higher today on light short-covering, spurred by concerns that the closure of the Strait of Hormuz will lead to a fertilizer shortage in West Africa ahead of the upcoming planting season.  The Gulf region is a major fertilizer exporter, and about 30% of the world's total fertilizer supply passes through the Strait.

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