Cocoa Plunges 19% as Rain Forecasts Stoke Market Volatility
- Rain in Ghana, Ivory Coast and Indonesia should help crops
- Lower open interest in markets aids bigger price swings
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Cocoa futures in New York saw the largest price drop in records going back more than 60 years, with a forecast of wetter weather for key producers feeding further volatility to the market.
The most-active contract in New York fell as much as 19% on Monday, while London futures fell as much as 18%. Rainfall is boosting the outlook for crops, and low open interest in cocoa markets is amplifying price moves.