What is London cocoa Futures?
The London Cocoa futures contract has long been used as the global benchmark for the pricing of physical cocoa. Intercontinental Exchange (NYSE:ICE) is a Fortune 500 company that operates a leading network of global futures, equity and equity options exchanges, as well as global clearing and data services across financial and commodity markets.Cocoa futures were introduced on ICE in 1986, and the ICE contract serves as the global benchmark for cocoa prices. The contract prices the physical delivery of exchange-grade product from a variety of African, Asian and Central and South American origins to any of five U. S.Key Takeaways. The Intercontinental Exchange (ICE) is an American company that owns and operates financial and commodity marketplaces and exchanges.ICE Futures US is a commodity futures and options exchange based in the United States. It is exempted from recognition as a stock exchange and is also exempted from registration as a commodity futures exchange in Ontario.
How do cocoa futures work?
A cocoa futures contract is a commitment to make or to take delivery of a specific quantity and quality of cocoa beans at a predetermined place and time in the future. All contract terms are standardized and set in advance. As a result, cocoa futures contracts are interchangeable, except for delivery time. All contract terms are standardized and set in advance. As a result, cocoa futures contracts are interchangeable, except for delivery time. There are currently three places where cocoa futures contracts can be exchanged: ICE Futures U. S. New York), ICE Futures Europe (London) and CME Europe (London).
What is going on with cocoa Futures?
Cocoa Futures Market News and Commentary Cocoa prices were weighed down by negative carryover from Tuesday, when the Ghana Cocoa Board projected the 2025/26 Ghana cocoa crop would increase by +8. MT in 2024/25. Ghana is the world’s second-largest cocoa producer. After testing a significant resistance zone, Cocoa futures prices are once again moving lower, continuing the bearish retracement that started on December 18, 2024. This current downward leg is expected to break below the April 2025 low, potentially reaching the 6576–5356 area.The International Cocoa Organization projects that global cocoa supply will drop by 13% to 4.Why are cocoa prices falling? Global cocoa production is recovering after poor growing conditions cut yields and put pressure on supplies. The 2024/25 season is forecast at 4. That’s an 8% year-on-year increase.Besides changing weather patterns, several other issues are also driving recent price hikes in cocoa. Across West Africa, new deforestation laws have prevented farmers from expanding cocoa plantations, keeping a lid on supply. West Africa is also grappling with an ageing tree stock.
Can you invest in cocoa futures?
You can invest in cocoa by purchasing ETFs, stocks or futures. But before you commit, familiarize yourself with the risks of investing in this commodity, as cocoa is vulnerable to political and environmental shifts. Compare your investing options across commodities and trading platforms before you buy. Cocoa is a luxury commodity and a crucial ingredient in many of life’s finer things: from sweets to pharmaceuticals, to various cultural dishes. Its popularity makes it a prominent asset on the stock market, but supply problems, environmental and political issues can sometimes make it an unstable investment.Over the past month, Cocoa’s price has fallen 2. CFD) that tracks the benchmark market for this commodity. Historically, Cocoa reached an all time high of 12906 in December of 2024.Cocoa farming is highly profitable due to the growing demand for chocolate and other cocoa products. The profitability depends on factors like yield per hectare, market price, and cost of production. Average Yield: 400-600kg per hectare per year. Price per Kg: ₦13000 – ₦15000 (as of 2024).Ghanaian cocoa farmers may see a further increase in the farmgate price for the 2025/2026 season, which begins in August. Sources close to the Ghana Cocoa Board (Cocobod), cited by Bloomberg, indicate the price could rise to 3,300 cedis per 64-kilogram bag, equivalent to about $319.