(ZEROHEDGE) – Cocoa futures in New York remain range-bound within a symmetrical triangle pattern after peaking near $12,000 a ton in mid-April, finding support around $7,000. Futures are rising this morning as traders are concerned about dwindling stockpiles in US warehouses.
New data from ICE exchange-monitored warehouses shows U.S. cocoa stockpiles have slumped to the lowest levels since December 2019. Given the global tightening of cocoa supplies theme, the bags held in U.S. warehouse could extend declines in the coming weeks and or months.
Bloomberg noted that even though the “cocoa market is expected to flip to a surplus in the 2024-25 season,” there is still increasing concern among commercial users that shortages will persist due to West Africa’s previous poor harvests, adding, “Cocoa arrivals at ports in top grower Ivory Coast are still lagging behind the prior season by more than a quarter, the latest data shows.”
