Cocoa Extends Slide From Record as Traders Flee Troubled Market

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Cocoa Prices,Futures Market

(Bloomberg) -- Cocoa prices slumped again, extending a week of extreme volatility as liquidity dries up and buyers hold back from purchasing beans. Most Read...

-- Cocoa prices slumped again, extending a week of extreme volatility as liquidity dries up and buyers hold back from purchasing beans.Futures slid as much as 9.3% to the lowest since mid-March in New York, and are now about a third lower than a record high set two weeks ago. Price moves have also been more erratic as a liquidity crunch upended the market after it became more expensive for traders to maintain their positions.

Futures that approached $12,000 a ton last month have since slid to near $7,500, a pullback that could offer some relief to buyers.For now, the market is struggling with a lull in trading. Cocoa’s wild run this year means traders have had to come up with more money to pay margin calls, forcing them to close out positions. Aggregate open interest in New York cocoa, or the number of outstanding contracts, has fallen to the lowest since 2011, exchange data compiled by Bloomberg show.

The dollar inched towards its highest level since November on Wednesday ahead of a Federal Reserve interest rate decision later in the day, after data on Tuesday showed more signs of inflationary pressure in the U.S. economy. Meanwhile, the yen held steady after dipping overnight to its lowest level since suspected intervention by Japanese authorities on Monday. Global markets were somewhat subdued with traders in many countries off for May Day or International Workers' Day.

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Cocoa’s Extreme Price Swings Ease in Market Hit by Thin TradingCocoa prices swung again, but in relatively calmer fashion than recently seen as a lack of liquidity fueled extreme moves. Arabica coffee extended declines.
منبع: BNNBloomberg - 🏆 83. / 50 ادامه مطلب »

Cocoa Slumps 17% as Wild Price Swings Grip Market(Bloomberg) -- Cocoa futures tumbled almost 17% in New York and slumped in London, with the market prone to large price swings as fewer and fewer companies...
منبع: YahooFinanceCA - 🏆 47. / 63 ادامه مطلب »