Commodity Blog

Commodity Prices - Cocoa

Wheat slipped after dollar gained and Iraq shifted from U.S. grain to supplies from Canada and Russia. The greenback advanced 0.8 percent versus a basket of six major currencies today. Iraq bought 100,000 metric tons of wheat from Canada and 280,000 tons from Russia. May futures for wheat delivery dropped $0.0475 (0.9 percent) to $4.9975 per bushel as of 10:17 on CBoT.

Cocoa sank to the lowest in three months in London on outlook for increasing production in Ivory Coast. While output in Ivory Coast hasn’t returned to its highest level, production is higher then previously predicted. Analysts rose forecast for Ivory Coast cocoa supply for 2009–2010 period by as much as 44,000 metric tons up from January to 3.425 million tons. Cocoa for may delivery fell 1.3 percent to $2,824 per metric ton by 17:24 on ICE Futures U.S. in New York.

Copper slipped today on speculation that economic rebound in the U.S. may be slow. Uncertainty in future of the U.S. economy lowered consumer confidence, causing fewer purchases. Copper prices also slid as the rebounding dollar curbed the appeal of commodities as an inflation hedge. May futures for copper delivery fell $0.094 (2.8 percent) to $3.2345 per pound on the Comex Division of the New York Mercantile Exchange.

Cocoa sunk to the lowest since September in New York on signals that large supplies will cut the price of the chocolate ingredient. Prices also dropped as the dollar gained 0.7 percent versus the euro. A rising dollar cut demand for some commodities as alternative assets. May futures for cocoa delivery slid $138 (4.5 percent) to $2,945 per ton on ICE.

Cattle futures slid today on signs that the stronger dollar will cut appeal of  the U.S. beef. The dollar rose 0.9 percent against a basket of six major currencies to a record level since July. The rising dollar makes purchases of beef from the U.S. unprofitable for overseas traders. April futures for cattle delivery slid $0.003 (0.3 percent) to $0.9125 per pound by 12:06 on the Chicago Mercantile Exchange.

Cocoa prices dropped after the dollar rebounded versus the euro and equities declined, decreasing appeal of some commodities for investors as safe haven. The dollar jumped on speculation that a European Union plan to aid Greece avoid default will fall. Analysts say that downward trend for cocoa can be short-term. May futures for cocoa delivery fell $17 (0.5 percent) to $3,099 per ton at 12:11 on ICE.

Wheat tumbled to a weekly low after U.S. producers increased sales of grain after a price rally. Earlier wheat slid on declining demand for inventories from the U.S. and growing global stockpiles. March futures for wheat delivery slid $0.075 (1.5 percent) to $4.8925 per bushel by 10:30 on the Chicago Board of Trade.

Cocoa advanced to the highest in five weeks in New York on speculation that global consumption may exceed world output. Holidays, like Valentine’s Day, create more demand for the chocolate ingredient. May futures for cocoa delivery added $58 (1.9 percent) to $3,098 per ton at 11:20 on ICE.

Gold rose to a weekly high in New York as economic recovery spurred appeal of commodities as an alternative investment. Demand for the precious metal as a safe haven was also boosted after the European Union meeting hadn’t provide details about helping Greece with its debt crisis. April futures for gold delivery rose $18.50 (1.7 percent) to $1,094.80 per ounce as of 11:50 on NYMEX.

Cocoa futures dropped after the dollar gained, causing an equity decline and, as a result, the investment attractiveness of commodities to wane. Decline is also caused by concerns that jobless rate in the U.S. and rising debt in Europe will stall economic revival. Analysts say that “equities can very easily break cocoa”. May futures for cocoa delivery fell $55 (1.7 percent) to $3,125 per metric ton on ICE Futures U.S. in New York.

Coffee price tumbled to the four-month low. Analysts say that this drop caused by the dollar’s rebound, not fundamentals. The dollar’s advance may convince investors and funds to take money out of commodities. March futures for Arabica-coffee delivery waned $0.0145 (1.1 percent) to $1.3155 per pound today.

Sugar went down in New York to the two-week low as the dollar rebounded against the euro, curbing investment appeal of the commodity. The U.S. currency gained 1.2 percent versus the euro, putting commodities under pressure. Some analysts say that sugar will be traded in a range of $0.27–$0.29 in the next couple of months if it wouldn’t fall below $0.27 now. March futures for raw-sugar delivery slid $0.0062 (2.2 percent) to $0.28 per pound by 13:08 on ICE.

Cocoa rose to a highest level in 21 years in London on speculation that demand will be boosted by a rebounding global economic. Restocking is taking place as consumer confidence returns and business conditions improve. Cocoa consumption jumped 0.6 percent in Europe in the fourth quarter. March delivery for cocoa rose 1 percent to $3,770 per metric ton on Liffe today.

Copper prices tumbled to the four-week low as the rising dollar cut buying of commodities as an inflation hedge and a decline in equity markets curbed demand outlook. Yet some analysts think that the outlook for copper over the longer term is quite positive as demand rises in Asia, including China. March futures for copper delivery dropped $0.06 (1.8 percent) to $3.295 per pound on NYMEX.

Soybeans rose on expectations that demand from China will rebound after prices from the U.S. fell 9.4 percent this month. China’s demand for soybeans grown in the U.S. to produce cooking oil and livestock feed rose as drought harmed crops in South America last year. March futures for soybean delivery gained $0.04 (0.4 percent) to $9.54 per bushel on CBoT.

Cotton prices dropped on speculation that the U.S. economy may be slow to rebound, cutting demand for the fiber. Retailer sales in the U.S. unexpectedly declined in December and unemployment is expected to average 10 percent in 2010, indicating that a pace of an economic rebound is slow. March futures for cotton delivery fell $0.0082 (1.1 percent) to $0.7261 per pound as of 11:22 on ICE.

Crude oil tumbled as retail sales fell and jobless claims increased, signaling that the economic recovery is slow. Weekly jobless claims rose as much as 2.5 percent, to the highest level in five weeks. Analysts think that fundamentals may force crude prices down to the $70 per barrel level after the end of the winter. February delivery for crude oil slid $0.26 (0.3 percent) to $79.39 per barrel by 14:30 on the New York Mercantile Exchange.

Cocoa reached the record in almost a month in London on outlook that demand will be supported by increasing usage in Europe. Cocoa usage in the Europe jumped 0.6 percent to 351,316 tons in the fourth quarter and indicator of demand, cocoa grindings, rose as much as 9.4 percent to 95,834.2 metric tons in Germany in the period. March delivery for cocoa added 0.4 percent to $3,403 per metric ton at 17:39 on ICE.

Copper slid to the three-weeks low today on speculation that global economic recovery may be slow. U.S. unemployment rate unexpectedly increased last week, causing concern that the recovery may slow. Copper also fell after the dollar climbed as much as 1.1 percent, eroding appeal of commodities as alternative assets. March delivery copper slid $0.064 (2 percent) to $3.1415 per pound as of 10:49 on NYMEX.

Cocoa tumbled to the five-weeks low in New York today after the dollar strengthened, cutting the demand for some commodities as an inflation hedge. Analysts think that “there is potential for prices to go up” as ”demand is coming back into the market”. March futures for cocoa delivery dropped $77 (2.2 percent) to $3,421 per metric ton by 11:18 on ICE Futures U.S. in New York.

Cocoa prices reached the highest level in five weeks in London as dwindling stockpiles caused concern that supply for chocolate manufacturers doesn’t meet demand. Inventories of beans in warehouses monitored by the Liffe exchange slid 29 percent in the period from October 5th through November 2nd, despite start of harvests in Ivory Coast and Ghana, the largest producers in the world. March delivery for cocoa gained 1.5 percent to $3,187 per ton on ICE Futures Inc. in New York.

Gold climbed to a record in all times in New York and London after the dollar fell today. Gold gained 27 percent this year. The metal should not drop below $1000 because central banks print money to help fund budget deficits.

Crude oil dropped in New York after a report that stockpiles of gasoline and distillate fuel, including heating oil and diesel, rose. Gasoline stockpiles increased 2.94 million barrels to 214.4 million last week; distillate supplies jumped 679,000 barrels to 171.8 million. Oil also fell because the strengthening dollar lowered the demand for energy as an alternative investment among buyers. In general situation for oil can be considered bearish. November delivery for crude oil dropped $1.44 (2 percent) to $69.44 per barrel by 1:35 on the New York Mercantile Exchange.

Copper declined as rising supplies may cause demand to decrease. Inventories in warehouses monitored by the London Metal Exchange gained 35 percent since July. December futures for copper delivery declined $0.005 (0.2 percent) to $2.7795 per pound on NYMEX.

Cocoa rose to highest in since 1989 in London with increasing demand in Germany, largest confectionery producer in the Europe. This increase in demand may signal that some buyers are restocking stockpiles. December delivery for cocoa rose 0.7 percent to $3,233 per ton on ICE Futures U.S. in New York.