Cocoa’s prolonged winning streak has faltered, with U.S. cocoa futures for December delivery falling 1.4% on Wednesday to around $6,090 per ton — extending a 10% weekly drop that pushed prices to their lowest levels since early 2024. Futures had earlier peaked at $12,931 in mid-December last year.
The decline comes after governments in Ivory Coast and Ghana — the world’s top cocoa producers — raised the minimum price payable to farmers, leading to a wave of selling pressure. Analysts attributed the drop to weak speculative positioning and reduced momentum in the market.
Citi analysts said cocoa had become “extremely oversold,” with money managers taking historically weak speculative positions. Similarly, Societe Generale reported that cocoa contracts traded in London were “extremely oversold,” and that short positions had surged to the highest level since August 2022.
J.P. Morgan strategists, however, noted early signs of a possible recovery, citing rising open interest in futures and options after touching historic lows. As of 9:26 a.m. EDT, cocoa futures were trading at $6,071, down 1.75% on the day.
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