Cocoa Price Update // CTAs Are Quite Long Commodities
275 Views18 Feb 2025 19:16
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- Cocoa Price Update Much of the price increase between summer and winter can be fundamentally explained with the decision by the cocoa board of the Ivory Coast (about 35-40% of global supply) not to allow farmers to plant new trees to discipline supply, as cocoa bean prices were too low from its perspective.
- Also contributing were cyclical happenings such as complicated weather occurring, swollen shoot virus and speculation.
- By now, the liquidity (measured by open interest in the futures market) in the cocoa market is quite low, making it almost impossible for smaller retail investors to participate in the market anymore.
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