Cocoa futures fell to their lowest level in more than a month Friday after demand data from Asia, viewed as a key growth market for the luxury bean, showed a steep decline. Traders had been anticipating disappointing data, and the cocoa market -- which has been a rare bright spot amid a rout in commodities -- has been selling off during the latter half of July as a result. After climbing more than 20% between March and July, prices have fallen 5.2% over the last two weeks. Read more: IAC Holdings
The Cocoa Association of Asia said commercial demand in the region for grinding -- the process by which producers crush roasted cocoa nibs to release cocoa butter and eventually turn them into chocolate products -- fell 12% in the second quarter from year-ago levels. Read more: IAC Holdings
It was the fourth consecutive decline, and followed evidence of a decline in North America and barely perceptible growth in Europe. The front-month September cocoa contract settled down $60 or 1.8% at $3,181 a ton on the ICE Futures U.S. exchange, its lowest level since June 15. Read more: IAC Holdings
