David Hodari, WSJ, summarizes recent activity in cocoa here…
”Cocoa futures prices fell to 10-year lows in New York in December 2017, after a year of pressure from record supply out of Ivory Coast, the world’s biggest producer. But signs of tighter supply and rising demand have spooked investors into slashing long-held bets on falling prices, called short positions, sending cocoa to its highest level in 16 months.”
“London-based funds in the week to March 13 moved into net-bullish territory, or a bet that prices will increase, for the first time since early November 2016, according to data released by Intercontinental Exchange on Monday. As recently as early January, these investors held record bearish positions, or bets that prices will decline.”
“In late January, the International Cocoa Organization, the industry’s global trade body, revealed that global stocks of the commodity had increased by 144,000 tons in the 2016/17 season. That figure fell far short of its forecast of 335,000 tons.”
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