Cocoa futures drifted lower at midweek trading as buyers took some profits off the table amid the strong dollar breaking past its one-year high. ICE cocoa lost nearly a percent to trade at $2,568 a ton in New York.
Producers such as Nigeria, Cameroon, and Ecuador are in the middle of their harvest season and have been hedging cocoa into the market. Prices have fallen to a point where the industry is willing to extend cover for cocoa.
Market pundits still expect global output in 2021/22 to be high, even though it is expected to fall from the record levels seen last season. Inventories and 2021/22 production should ensure that demand this season will be easily met, without putting significant upward pressure on prices…