What goes up must come down. The old trading adage certainly applied to cocoa this summer. After reaching $3,290/ton on July 1, the futures price dropped to $2,801/ton by July 28. That’s a drop of almost $500 in a month. Nobody can explain such a decline with changes in supply and demand of cocoa. There was no news of larger than expected increases in cocoa supplies. If anything, there were indications that the light harvest in both Ghana and the Côte d’Ivoire would be less than last year. So it’s back to the speculators.
Continue reading “We Need A New International Cocoa Agreement”
