Investing.com - Cocoa futures edged lower on Thursday, trading close to the previous session’s three-month low as easing concerns over mid-season crop prospects in top producer Ivory Coast and a declining demand weighed on the commodity.
On the ICE Futures U.S. Exchange, cocoa futures for May delivery traded at USD2,078.00 a metric ton during European afternoon trade, shedding 0.48%.
It earlier fell by as much as 0.6% to trade at a session low of USD2,068.50 a metric ton. Prices dropped to USD2,060.50 on Wednesday, the lowest since January 9.
Cocoa prices have come under heavy selling pressure in recent weeks, losing nearly 15% since March 21 as beneficial weather in Ivory Coast improved crop prospects in the world’s largest producer.
Agricultural meteorologist MDA Information Systems said that it expected more rainfall across key cocoa-growing regions in Ivory Coast in the coming week, potentially boosting yield prospects.
The mid-season crop in Ivory Coast, which produces more than one-third of the world's cocoa, is harvested from April to September.
Fears that dry weather conditions would crimp output in the West African nation led to first quarter gains of nearly 5.5% in the first three months of 2012.
Further dampening sentiment on the commodity, Nigeria-based industry group Asset & Resource Management said in a report dated April 2 that global cocoa production could exceed demand by 110,000 metric tons, underlining concerns over slowing demand and ample supplies.
Market analysts noted that growing concerns over crop conditions in neighboring Ghana, the world’s second largest producer, could curb further selling.
West African countries produce nearly half of the world's cocoa.
Meanwhile, agricultural commodities came under further pressure from a stronger U.S. dollar and broader market risk aversion, which was sparked by concerns over Spain’s fiscal health and diminished expectations for a third round of monetary easing in the U.S.,
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.31% to trade at 80.16, the highest since March 16.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
Elsewhere, on the ICE Futures Exchange, coffee futures for May delivery dipped 0.1% to trade at USD1.8318 a pound, cotton for May delivery rose 0.47% to trade at USD0.8974 a pound, while sugar futures for May delivery climbed 1% to trade at USD0.2463 a pound.
On the ICE Futures U.S. Exchange, cocoa futures for May delivery traded at USD2,078.00 a metric ton during European afternoon trade, shedding 0.48%.
It earlier fell by as much as 0.6% to trade at a session low of USD2,068.50 a metric ton. Prices dropped to USD2,060.50 on Wednesday, the lowest since January 9.
Cocoa prices have come under heavy selling pressure in recent weeks, losing nearly 15% since March 21 as beneficial weather in Ivory Coast improved crop prospects in the world’s largest producer.
Agricultural meteorologist MDA Information Systems said that it expected more rainfall across key cocoa-growing regions in Ivory Coast in the coming week, potentially boosting yield prospects.
The mid-season crop in Ivory Coast, which produces more than one-third of the world's cocoa, is harvested from April to September.
Fears that dry weather conditions would crimp output in the West African nation led to first quarter gains of nearly 5.5% in the first three months of 2012.
Further dampening sentiment on the commodity, Nigeria-based industry group Asset & Resource Management said in a report dated April 2 that global cocoa production could exceed demand by 110,000 metric tons, underlining concerns over slowing demand and ample supplies.
Market analysts noted that growing concerns over crop conditions in neighboring Ghana, the world’s second largest producer, could curb further selling.
West African countries produce nearly half of the world's cocoa.
Meanwhile, agricultural commodities came under further pressure from a stronger U.S. dollar and broader market risk aversion, which was sparked by concerns over Spain’s fiscal health and diminished expectations for a third round of monetary easing in the U.S.,
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.31% to trade at 80.16, the highest since March 16.
A stronger dollar reduces the appeal of U.S. crops to overseas buyers and makes commodities less attractive as an alternative investment.
Elsewhere, on the ICE Futures Exchange, coffee futures for May delivery dipped 0.1% to trade at USD1.8318 a pound, cotton for May delivery rose 0.47% to trade at USD0.8974 a pound, while sugar futures for May delivery climbed 1% to trade at USD0.2463 a pound.