Cocoa Extends Losing Streak to 11th Session
Category: Cocoa
(Wall Street Journal) – Cocoa prices fell for an 11th straight session on Wednesday, its longest slide in history amid paltry demand.
The May contract slid 1.1% to end at a one-month low of $2,758 a ton on the ICE Futures U.S. Exchange. It is the longest losing streak for the most actively traded contract based on FactSet data going back 30 years.
Chocolate makers and other cocoa users have been holding off on orders, betting that prices will go even lower, said James Cordier, president of OptionsSellers.com in Tampa.
“Manufacturers are not taking advantage of the lower prices we’ve seen the last several days; so, that has traders saying they don’t want it either,” Mr. Cordier said.
Prices have fallen 8.7% since March 3.
At the same time, firms betting on higher prices have been unloading their holdings as good growing weather in West Africa sets in. The region is the source of more than 70% of the world’s cocoa.
