After reaching peaks, to the point of being worth more than copper, cocoa price fell at the start of week 18 at London and to new York.
Read also: Cocoa: how Ivory Coast wants to revive production
In London, July cocoa futures fell almost 15%, the biggest loss in a day. When the market opened on Tuesday April 30, the loss was more than 10%, according to Reuters. In New York, the decline was 16% on Monday April 29.
Read also: How much will the price of chocolate bars increase with the surge in cocoa?
1er May, the bean was priced at 7,808 pounds per tonne for delivery in May, the lowest level in a year, reports our colleagues from the Ecofin Agency. On the same date in New York, futures prices fell by $950 between April 30 and 1er May, closing at $9,183. This is the lowest price recorded since March 22. Prices started to rise again before falling again on Friday May 3.
Technical measures have destabilized the cocoa market
This decline can be explained by measures taken by the ICE exchange to increase initial margins on futures contracts. “Higher margins and cocoa volatility have led to a decline in open interest from around 400,000 lots in November to around 243,000 lots currently,” ING bank said, as quoted by Reuters.
More favorable fundamentals for cocoa?
Also note an improvement in weather conditions in West Africa, with the arrival of rain, which will only have a real effect on supply if it lasts. So to be continued.
