December ICE NY cocoa (CCZ26) is down -68 (-1.22%), and December ICE London cocoa #7 (CAZ26) is down -20 (-0.48%).
Cocoa prices are trading lower as the Brazilian real plunged -9% after President Luiz Inacio Lula da Silva surprised the markets by winning the weekend Brazilian presidential election for a fourth term. The weaker Brazilian real encourages exporters to sell more cocoa, as they can get a higher dollar price for their sales. Brazil is a much smaller player in the cocoa market than West African nations and Ecuador, but it remains the world’s seventh-largest cocoa producer, accounting for around 4-5% of global cocoa production, according to ICCO estimates.
