Cocoa Future Prices less then Consumption 2011-2012

Cocoa futures prices have been hit hard, Cocoa production will be 100,000 metric tons less than consumption in 2011-2012. Cocoa for March delivery advanced 0.4 percent to $2,190 a ton by 07:15 a.m. on ICE Futures U.S. in New York. The price, which fell as much as 4.1 yesterday, later bounded to climb as much as 8.7 percent. Prior to yesterday, it had fallen for 12 consecutive sessions, the longest slump since at least 1961.

Cocoa for March delivery climbed 0.8 percent to 1,430 pounds ($2,229) a ton on NYSE Liffe in London. With the sell-off over the last six weeks from European debt concerns rivaling the falls experienced immediately after the failure of Lehman in 2008. Paul Deane, an economist at Australia & New Zealand Banking Group Ltd. wrote in a report e-mailed today. “Even with last night’s bounce, prices are still hovering at levels more consistent with 2007 levels.”

With the crop in top global producer Ivory Coast falling to 1.35 million tons, down from more than 1.75 million tons the previous season, Gerry Manley, managing director and global head for cocoa at the company, said by phone from London yesterday. Cocoa has fallen 9.2 percent in London and 13 percent in New York over the past month on speculation supplies would be better than initially estimated. Cocoa rose for a second day in New York, following the longest slump in at least 50 years, after Olam International Ltd. said output will trail consumption in the season started Oct. 1. Sugar advanced.

Net-short positions fell to 2,695 from 5,995 futures a week earlier, according to the weekly commitments of traders report published on the exchange’s website yesterday. Money managers reduced their net-short position, or bets on lower prices, in London cocoa by 55 percent in the week ended Dec. 6, data from NYSE Liffe, the derivatives arm of NYSE Euronext, show.

Category: Cocoa, cocoa commodity, cocoa future prices, cocoa prices 2012, cocoa production, global cocoa producer, ice cocoa prices