December ICE NY cocoa (CCZ26) is up +0.12 (+0.21%) today, and December ICE London cocoa #7 (CAZ26) is up +31 (+0.72%).
Cocoa prices extended this week’s rally today, with NY cocoa posting a 1-month high and London cocoa a 6-week high. Signs of strength in cocoa demand are bullish for prices after Malaysia reported today that its Q3 cocoa grindings jumped +47% y/y to 890.414 MT. Global Q3 cocoa grindings will be reported on Thursday, with Asian grindings expected to rise +15% y/y, European grindings to decline -3.9% y/y, and North American grindings to remain largely unchanged. Gains in cocoa prices are limited today after the dollar index ($DXY) rallied to a 1.5-year high.