Cocoa Hits Lowest in a Month as Wild Price Swings Grip Market
- New York futures post biggest intraday loss since 1960
- Fewer companies can afford rising costs to back their trades
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Cocoa futures tumbled in New York and London, with the market prone to large price swings as fewer and fewer companies can afford rising costs to back their trades.
The most-active contract fell as much as 17% to $8,800 a ton in New York, the biggest intraday drop in data going back to 1960. Futures settled at $8,931 per ton, the lowest in over a month. The market has been volatile, with prices dropping one day and surging the next. Overall, futures have dropped more than 20% from a record high reached April 19 after more than doubling this year.