COCOA futures rise 2.3% above $8000 per ton today, as the Ivory Coast expects 40% lower mid-crop season due to prolonged drought and limited rainfall, pressuring exporters and production from the world-leading cocoa producer.
- The mid-crop season starts April 1 and will last to the end of Septembers. Reuters sources reported that expect farmers to harvest between 280,000 and 300,000 metric tons of cocoa, with deteriorating both beans size and quality vs 500,000 tons of cocoa, harvested during a previous mid-crop season and 550,000 10-year average.
- Cocoa market faces risk that the arrival of first cocoa beans to ports will be significantly delayed. At least in June, the crop season can be bumpy for exporters, potentially lifting prices. According to an anonymous Abidjan-based exporter, now Ivory Coast farms have almost zero cocoa ready for harvest. Cocoa requires 22 weeks to become matured, ready for harvest.
COCOA (H1 interval)
Cocoa gains today, with potentially bullish pattern forming on MACD. Cocoa faces a significant resistance zone at $8100, where we can see EMA50 (the orange line).
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app
Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
