March ICE NY cocoa (CCH19) on Wednesday closed up +48 (+2.11%) and March ICE London cocoa (CAH19) closed up +21 (+1.26%).
Cocoa prices moved higher Wednesday on signs of stronger demand after the European Cocoa Association reported that Q4 European cocoa grindings rose +1.6% y/y to 359,103 MT, although that was below expectations for a +2.0% y/y increase.
Mar NY cocoa had dropped to a 3-week low on Tuesday and Mar London cocoa fell to a 4-week low on signs of robust cocoa production in West Africa.
Monday’s data from the Ivory Coast, the world’s biggest cocoa producer, showed that Ivory Coast farmers sent 1.19 MMT of cocoa to ports during Oct 1-Jan 13, up +12.2% from the same time last year.
Also, data from Ghana, the world’s second-biggest cocoa producer, showed strong output after the Ghana Cocoa Board reported that cocoa purchases from Ghana cocoa farmers rose +4.7% y/y to 455,663 MT during the first twelve weeks of the harvest from Oct 5-Dec 28.
Cocoa prices last week rallied to a 6-month high on crop concerns in West Africa after Radiant Solutions said “mid-crop growth will be minimal” for cocoa crops as weather conditions throughout the Ivory Coast and Ghana have been overwhelmingly dry.
