• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Cocoa whipsaws to close one of the wildest weeks market has seen

1 year ago
in Economy, Features, highlights, Home, home-news, latest News, Markets
1 min read
0 0
0
143
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Cocoa whipsaws to close one of the wildest weeks market has seen

Cocoa futures whipsawed, while still on track for a nearly 30% weekly drop, as it wraps up one of the craziest stretches the market has ever seen.

Just two weeks ago, the most-active contract hit a record of almost $12,000 a ton as the industry grappled with the fallout of severe supply shortages. But a plunge this week took futures as low as $6,990 — roughly 40% below the all-time high — accompanied by extreme price swings after an exodus of traders sapped liquidity.

The pullback has marked a stark turnaround for cocoa, which had become more expensive than copper. Prices soared as poor harvests in West Africa left the world facing a third year of shortages, stressing buyers and making chocolate pricier. But the wild run has also made it costlier for traders to maintain their positions, prompting many to walk away.

The cash crunch is hitting the physical market by forcing traders to delay purchases from the top producers, Bloomberg reported this week. Buying more beans would require them to hedge their purchases in the futures market, just as bigger volatility means they need to put up more cash to cover margin calls.

“It’s important to underscore that the recent downturn in cocoa prices is primarily a result of trading maneuvers, not a realignment of market fundamentals,” analysts at Fitch Solutions’ BMI unit said in a note, adding they expect volatility to persist.

Cocoa slid as much as 7.6% to $6,990 a metric ton in New York on Friday, before paring losses to trade 0.9% higher. It’s still on track for a 28% weekly drop, the largest in data to 1959.

RelatedPosts

Government Announces Death of Former First Lady Nana Konadu Agyeman-Rawlings

New UN Forum Aims to Tackle Developing Economies’ Debt Issues

Dangote Plans 10% Sale of Refinery Shares

Recent rain that could aid crops in West Africa may be weighing on prices. Still, more is needed to fully ease dryness in the region, according to forecaster Maxar Technologies Inc.

Ivory Coast and Ghana have also raised the prices paid to farmers, which could entice more beans back to the market.

Unprecedented Volatility

Volatility spiked as bigger margin requirements spurred traders to close out positions, helping to drive aggregate open interest, or the number of outstanding contracts, in New York cocoa to the lowest in more than a decade. That has left the market more vulnerable to huge price swings like those seen this week.

In other soft commodities, robusta coffee futures in London fell on Friday to the lowest in a month, with signs of rising stockpiles easing supply concerns.

Source: bloomberg
Via: norvanreports
Tags: CocoaCocoa whipsaws to close one of the wildest weeks market has seenFitch Solutionsfutures
No Result
View All Result

Highlights

CAL Bank’s Total Assets Drop by GHS 1.42bn in Q3 2025; CAR Remains Below Regulatory Threshold

Former First Lady Nana Konadu Agyeman-Rawlings Passes Away at 77

GFA President Commends Ghanaian Media, Calls For Continued Collaboration to Advance Football Development

Africa Loses $5bn Annually to Forex Transactions, Says AfCFTA Secretariat

World Bank Unveils IFC2030 Strategy to Boost Private Capital and Job Creation

Domestic Debt Surpasses External Debt for the First Time in Years

Trending

Features

Government Announces Death of Former First Lady Nana Konadu Agyeman-Rawlings

October 23, 2025

Government Announces Death of Former First Lady Nana Konadu Agyeman-Rawlings The Government of Ghana has announced with...

New UN Forum Aims to Tackle Developing Economies’ Debt Issues

October 23, 2025

Dangote Plans 10% Sale of Refinery Shares

October 23, 2025

CAL Bank’s Total Assets Drop by GHS 1.42bn in Q3 2025; CAR Remains Below Regulatory Threshold

October 23, 2025

Former First Lady Nana Konadu Agyeman-Rawlings Passes Away at 77

October 23, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.