Cocoa Driven by Supply Fears, El Nino, but Moves Seem Hard to Justify
Dow Jones
Aug 21
1528 GMT - Cocoa prices are moving higher on supply fears and the risk of El Nino, but erratic market movements are proving hard to explain, Rabobank's Oran van Dort says. Cocoa contracts have surged 18% in New York since a July 30 low. Ghana's cocoa board warned production would decline by 16% in the 2026-27 season, helping drive prices higher, Van Dort says, adding that cocoa trade this week has been volatile. "The daily moves we are seeing are feeling harder to justify at times. It feels like large moves are no longer reserved for big data releases." Cocoa trades down 0.7% Friday at $6,020 a ton.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.