Cocoa Price Swings Are the Craziest Since the 1970s
- A measure of price volatility hits the highest since 1977
- Traders exiting the market leave prices vulnerable to swings
Chocolates ready for packaging in Paris.
Photographer: Cyril Marcilhacy/BloombergThis article is for subscribers only.
Cocoa resumed gains in New York, with prices the most volatile in almost five decades amid uncertainty over a historic crunch and as traders pull out of the market.
Futures have soared about 160% already this year as poor West African harvests leave the world desperately short of beans. But the rally has made it more expensive to maintain positions, prompting investors to close out trades, draining liquidity and making the market more vulnerable to large price swings.