Cocoa futures in New York saw the largest price drop in records going back more than 60 years, with a forecast of wetter weather for key producers feeding further volatility to the market.
The most-active contract in New York fell as much as 19% on Monday, while London futures fell as much as 18%. Rainfall is boosting the outlook for crops, and low open interest in cocoa markets is amplifying price moves.
Rains “should improve conditions quite a bit” in Ghana, the world’s second-biggest grower, and Indonesia, Donald Keeney, senior meteorologist at Maxar Technologies said in an email.Top producer Ivory Coast will also benefit from wet weather, said Keeney, but still needs more rainfall to completely end the dryness stressing crops.
The most-active contract in New York fell as much as 19% on Monday, while London futures fell as much as 18%. Rainfall is boosting the outlook for crops, and low open interest in cocoa markets is amplifying price moves.
Rains “should improve conditions quite a bit” in Ghana, the world’s second-biggest grower, and Indonesia, Donald Keeney, senior meteorologist at Maxar Technologies said in an email.Top producer Ivory Coast will also benefit from wet weather, said Keeney, but still needs more rainfall to completely end the dryness stressing crops.
