Commodity Blog

Commodity Prices – Cocoa

Soybeans gained today on speculation that US inventories will decline with increasing China’s imports. China bought 284,000 metric tons of US soybeans for delivery after September 1st, while Chinese processors may have purchased more than 1.2 million tons of soybeans from the US in the previous week. November futures for soybean delivery went up $0.0525 (0.5 percent) to $10.39 per bushel as of 10:12 on CBoT.

Cocoa slipped to the lowest level in three months in London on outlook for better harvest in Ivory Coast, the biggest grower in the world. The harvest starting next month may rise 11 percent to 1 million metric tons from 900,000 tons in the previous year. December delivery for cocoa gained $4 (0.1 percent) to $3,039 per ton by 12:03 on ICE.

Raw-sugar futures erased gains, sliding to the two-week low, on speculation that growing supplies from Brazil will curb the global deficit. Production in Brazil’s Center South, the largest producing region in the world, advanced 26 percent in the first half of July. October delivery for raw sugar fell 0.5 cent (2.7 percent) to $0.1774 per pound as of 13:10 on ICE.

Cocoa futures gained today after the report about increased demand in North America. The cocoa grind increased by 12 percent in the second quarter to 117,657 metric tons compared to the previous year. Analysts say that grinding numbers show strong demand and support prices. September delivery for cocoa rose $21 (0.7 percent) to $3,165 per ton on ICE.

Hogs futures went up today as hot weather in the U.S. causes decrease of animals’ weight, causing concern about declining pork supply. The animals tend to eat less with such jot weather, decreasing their weight. Hogs purchased yesterday by pork processors weighed 2 kilograms (4.44 pounds) compared to the same day in the previous month. October futures for hog settlement gained $0.00375 (0.5 percent) to $0.757 per pound on the CME.

Cocoa rose in New York today for the first time in three sessions as rainfalls slowed production in Ivory Coast, the biggest producer in the world. Prices may rise further in New York after the dollar weakened today. September delivery for cocoa gained $13 (0.4 percent) to $2,980 per metric ton at 9:38 on ICE.

Copper prices rose in New York today for the third consecutive session as rising equities and decreasing stockpiles promised steady demand. The LME-monitored inventories fell for the 14th session to the lowest level since November 30th. The MSCI World Index of shares rose for the second day, signaling about the improving global economic outlook. September futures for copper delivery gained $0.047 (1.6 percent) to $3.018 per pound as of 10:52 on COMEX.

Raw sugar rose today for a third consecutive day on outlook for increasing purchases from Russia next month as the import tax was lowered. Analysts say that sugar prices may go up 30 percent in 2010 on rising demand, low output and transportation delays. October delivery for raw sugar gained $0.0026 (1.6 percent) to $0.1654 per pound on ICE.

Cattle and hogs slid today on concern for economic growth as the U.S. payrolls was lower than expected. Demand for meat also tends to fall in July and August because of hot weather. August delivery for cattle futures slipped $0.002 (0.2 percent) to $0.8975 per pound as of 12:01 p.m. on CME. August settlement for hog futures dropped $0.008 (1 percent) to $0.8105 per pound.

Cocoa dropped today on concern that the U.S. economic recovery would stall, damping demand for commodities. U.S. nonfarm payrolls dropped in June more than expected. Housing market and manufacturing sector also showed signs of weakness. September delivery for cocoa declined $70 (2.3 percent) to $2,971 per metric ton on ICE.

Hog and cattle futures advanced on signs of the expanding global economic recovery, which may increase demand for U.S. meat. China’s exports jumped 50 percent from the last year, hinting that pace of the global recovery is accelerating. The weaker dollar also helped U.S. meat exports, making them cheaper, and thus more attractive, to oversees buyers. July futures for hog settlement rose $0.0075 (1 percent) to $0.7895 per pound by 10:05 on CME. August futures for cattle delivery gained $0.00525 (0.6 percent) to $0.8835 per pound.

Cocoa futures gained for the third consecutive day in New York amid concerns that the viral disease may hurt the crops, diminishing output in Ivory Coast, the biggest grower in the world. The only way for farmers to prevent spreading of swollen shoot, which is spread by insects and usually kills infected plants within two years, is by uprooting and burning infected trees. Global output will trail demand by 69,000 metric tons in the year ending September 30th. July delivery for cocoa advanced $13 (0.4 percent) to $2,994 per metric ton as of 10:16 on ICE Futures.

Sugar dropped in New York and London on forecast that output in Brazil, the largest cane grower in the world, will rise. Growing output was attributed to favorable weather. Production in the Center South, the country’s biggest producing region, increased to 1.51 million metric tons in the second half of April. July delivery for raw sugar lost $0.0028 (1.8 percent) to $0.1508 per pound on ICE.

Cocoa rose today in signs of dwindling supplies from Africa and on prospect for increasing demand. Cocoa exports from Ivory Coast, the biggest producer in the world, dropped 46 percent in April. Global production will trail demand by 69,000 metric tons in the year ending September 30th. July delivery for cocoa gained $20 (0.7 percent) to $2,924 per ton by 9:26 on ICE Futures U.S. in New York.

White sugar dropped to the 10-month low in London on expectations of high supply from Brazil and India. Brazil’s output surged and supply may exceed demand in India, turning the biggest buyer into exporter. Increasing supplies together with continuous troubles in Europe cause experts to be bearish in their outlook for sugar. August delivery for white sugar dropped $11 (2.5 percent) to $431.50 per metric ton on Liffe exchange as of 10:39.

Cocoa futures tumbled today as commodities followed decline of global equities. The global economic recovery may be slowed, hurting commodity prices, by the spreading contagion of Greece’s fiscal crisis. The Standard & Poor’s 500 Index may are heading toward the largest weekly decline since March 2009. July futures for cocoa delivery sank $178 (5.6 percent) to $3,025 per metric ton by 11:55 on ICE Futures U.S. in New York.

Cocoa gained today on an outlook that a demand will exceed an output as exports from Cameroon dropped. Cameroon shipments of cocoa fell as much as 35 percent in March, while the global production won’t be enough to satisfy a demand in the 2009–10 season. July delivery for cocoa rose $18 (0.6 percent) to $3,211 per metric ton by 10:02 on ICE Futures U.S. in New York.

Copper dropped on speculation that the global recovery will be slowed by spreading debt problems in Europe, resulting in a lower demand for raw materials. Credit ratings of Greece, Portugal and Spain were lowered this week. A concern about a budget deficit is contaminating European countries, hurting markets. July futures for copper delivery slid $0.02 (0.6 percent) to $3.3665 per pound as of 10:14 on the Comex.

Cocoa advanced on a concern that an increasing demand will boost a global supply deficit. The demand will exceed the supply by 124,000 metric tons in the year ending September 30th. The prices were also spurred by reports of below average amount of rains in the Ivory Coast. July delivery for cocoa advanced $33 (1.1 percent) to $3,172 per ton by 10:19 on ICE Futures U.S. in New York.

Cotton gained on a speculation that a demand will rise after India, the second biggest supplier in the world, halted exports of the commodity. The India’s export ban may affect as many as 2.5 million bales according to the Cotton Association of India. Signs of a widening economic recovery also boosted the prices. July delivery for cotton gained $0.0116 (1.4 percent) to $0.8598 per pound as of 10:21 on ICE.

Corn futures gained as the rising prices for a gasoline caused speculation about an increasing demand for grain-based fuels. The rebound in the U.S. economy has led to expectation that the demand for a fuel will increase. May delivery for corn futures gained $0.0075 (0.2 percent) to $3.4525 per bushel by 10:16 on the Chicago Board of Trade.

Cocoa futures fell in New York on the speculation that candy-makers may cut their purchases until prices will drop. The prices previously have rose on slower exports from Ivory Coast, then later dropped on the outlook for the good harvest. May delivery for cocoa retreated $37 (1.2 percent) to $2,953 per metric ton on ICE.

Cotton futures reached the highest price in more than a week after the weaker dollar spurred the demand for some commodities. The falling greenback and tight supply of the fiber are leading to a fairly strong demand. May delivery for cotton climbed $0.011 (1.3 percent) to $0.826 per pound as of 11:36 on ICE.