-- 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.
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: BNNBloomberg - 🏆 83. / 50 Read more »
Source: YahooFinanceCA - 🏆 47. / 63 Read more »