Cocoa Futures Erase Earlier Rally as Severe Volatility Persists
- Low liquidity leaves prices more vulnerable to big moves
- Huge supply shortages have roiled the market this year
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US cocoa futures relinquished almost all their gains from earlier Wednesday, with hedge funds exiting bullish bets after a rally that sent prices surging as much as 20% in the past two days.
In another example of how the hottest commodity market this year continues to grapple with wild volatility, contracts of the chocolate ingredient for July delivery fluctuated between gains of as much as 5.4% and losses of as much as 2% in New York on Wednesday.