New York Cocoa futures fell to a 3-year low on Tuesday as favorable weather in West Africa boosted expectations there would be a global surplus in the 2016/17 season and encouraged funds to take more bearish positions.
March New York Cocoa was off $24, or 1.0 percent, at $2,394 a tonne at 1451 GMT after setting a low of $2,392, the weakest for the second contract since August 2013. Speculators have switched to a net short position in London Cocoa and cut a net long in New York Cocoa, according to data issued on Monday.
“The crop outlook in the key growing countries, especially in West Africa, is so good that the surpluses expected for the current 2016-17 season are being upwardly adjusted,” Commerzbank noted.
“Light rains mixed with sunny spells last week in most of Ivory Coast’s cocoa growing regions strengthened the prospect for the main crop, which is expected to exceed last season’s,” farmers said on Monday.
