Cocoa Prices Swing Wildly as Liquidity Overshadows Supply Issues
- Fewer companies can afford rising costs to back their trades
- Market is still beset by shortage due to issues in West Africa
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The cocoa market was whipsawed by extreme volatility in the futures market on Tuesday amid a lack of liquidity.
After more than doubling this year, futures traded in New York experienced a historic crash this week, at one point falling as much as 27% for the biggest two-day decline in data going back to 1960. Prices then reversed later on Tuesday, trading up for the day.