September ICE NY cocoa (CCU26) today is down -320 (-5.71%), and September ICE London cocoa #7 (CAU26) is down -232 (-5.56%).
Cocoa prices plunged to fresh 2-month lows today amid signs of tepid global cocoa demand and ample supplies. The European Cocoa Association reported last Thursday that Q2 European cocoa grindings fell -4.6% to 316,366 MT, a larger decline than the -1.5% y/y expected and the lowest level for Q2 in 6 years. However, the National Confectioners Association reported that Q2 North American cocoa grindings unexpectedly rose by 7.7% y/y to 109,659 MT, well above expectations of a -1% y/y decline, easing cocoa demand fears. Also, Asian cocoa demand improved after the Cocoa Association of Asia reported that Q2 Asian cocoa grindings rose by +25% y/y to 224,646 MT, well above expectations of +9% y/y.
