Cocoa futures rallied sharply on Friday after North American second-quarter cocoa grindings unexpectedly rose 7.7% year-over-year to 109,659 metric tons, defying forecasts of a 1% decline and easing demand concerns. September ICE NY cocoa settled up 171, or 3.19%, and September ICE London cocoa gained 118, or 2.97%, as short covering emerged. The upbeat North American data contrasted with a 4.6% drop in European grindings to 316,366 metric tons, the lowest second-quarter level in six years, while Asian grindings surged 25% to 224,646 metric tons. Prices have also been supported by heavy rains in Ivory Coast and Ghana that threaten supplies, and by a 5.7% sales increase at Barry Callebaut, the world’s largest cocoa processor. However, rising ICE inventories to a two-year high of 3,249,974 bags and a 30% jump in Nigerian June exports to 18,922 metric tons are capping gains.
Barry Callebaut AGBarry Callebaut reported a 5.7% sales increase, indicating stronger demand for cocoa products.