Cocoa whipsaws to close one of the wildest weeks market has seen

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Cocoa slid as much as 7.6% to $6 990 a metric ton in New York on Friday, before paring losses to trade 0.9% higher.

Cocoa futures whipsawed, while still on track for a nearly 30% weekly drop, as it wraps up one of the craziest stretches the market has ever seen.

The cash crunch is hitting the physical market by forcing traders to delay purchases from the top producers, Bloomberg reported this week. Buying more beans would require them to hedge their purchases in the futures market, just as bigger volatility means they need to put up more cash to cover margin calls.

It’s still on track for a 28% weekly drop, the largest in data to 1959.

 

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