July ICE NY cocoa (CCN24) this morning is down -951 (-10.24%), and July ICE London cocoa #7 (CAN24) is down -664 (-8.37%).
Cocoa prices today are sharply lower. Recent volatility in cocoa prices has made it more expensive to maintain positions in cocoa futures as margins have sharply increased, prompting traders to close out trades, which drains liquidity and makes the market more vulnerable to large price swings. Also, due to record-high prices, many traders and chocolate companies are delaying purchases of cocoa beans for the next season.
