“Cocoa prices fell to their lowest level in more than a week as traders reassessed their positions after the Intercontinental Exchange Inc. took steps to curb market volatility.”, — write: epravda.com.ua
Cocoa prices fell to their lowest level in more than a week as traders reassessed their positions after the Intercontinental Exchange Inc. took steps to curb market volatility. Bloomberg writes about it. The most active contract fell by 4.8% in London. On Tuesday, ICE Futures Europe lowered so-called contract accountability levels, the threshold at which traders must disclose more information about their positions. The new policy takes effect on January 13. The update does not mean that trading houses holding positions in excess of liability levels should liquidate them, as they can be fully justified on a hedging basis for physical volumes.Advertisement: Cocoa futures have nearly tripled in the past year amid renewed concerns in terms of supplies, becoming one of the most dynamic goods. The rise made holdings more expensive and prompted traders to exit the market, limiting liquidity and leaving cocoa vulnerable to large swings. Read also: Chocolates are becoming more expensive and smaller. Why is there not enough cocoa in the world? Reminder:Advertisement: Cocoa beans have become the most profitable among major commodities in 2024, surpassing even Bitcoin and the US stock market. Cocoa futures hit their highest level since April on forecasts of a crop failure in West Africa and historically low inventories.