Cocoa futures fall almost 7%, arabica coffee closes lower in the US and UK

Published 2024년 5월 7일

Tridge summary

Cocoa futures have seen a significant decline of nearly 7% in New York, with the July contract dropping to $7,588 per metric ton, as the market demonstrates technical weakness and funds continue to liquidate positions, exacerbated by increased margin calls. This downturn is partly due to a better forecast for the mid-season harvest in Africa. Meanwhile, Arabica coffee futures have also declined, dropping by 2.8% to $1.952 per pound, while raw sugar futures have seen a slight increase of 1% to 19.48 cents per pound, supported by concerns over potential damage to sugar cane plantations due to hot weather in Thailand and dry conditions in south-central Brazil.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Cocoa futures in New York fell nearly 7% on Monday, continuing a downward move after a brief pause on Friday, as the market appears technically weak and funds continue to liquidate positions. Arabica coffee also closed lower, while raw sugar rose. Cocoa, Robusta coffee and white sugar futures in London were not traded due to a public holiday. COCOA The July cocoa contract in New York closed down $557, or 6.8%, at $7,588 per metric ton. The contract lost 23% last week. Traders said the drop was due to the liquidation of long positions by funds, in a move triggered in part by increased margin calls by the exchange. “Cocoa fell amid a better outlook for the mid-season harvest (in Africa) and technical sales,” Rabobank said in a note. COFFEE July Arabica coffee ended down 5.55 cents, or 2.8%, at $1.952 per pound, a one-month low. The contract lost 10% last week. Traders said the Arabica coffee market appears weak, with funds liquidating long positions, as well as the bearish influence ...

Source: Mercado Do Cacau