Cocoa surges 2.3% above $8000 amid weak crop in Ivory Coast and harvest delays

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).

Source: xStation5