Cocoa marks possibly the biggest daily spike in history📈
Cocoa is rebounding by almost 14% today, which is probably the biggest daily spike ever. Of course, the market closes at 6:30 pm GMT, so some of the movement may be reduced. Previously, such strong increases took place in 1990 and 1993. The price of cocoa is rebounding today from the vicinity of $7500 to the level of $8500 per ton and is approaching the resistance set by the retracement of 38.2 of the entire upward wave from this year. Such strong market movements are associated with very low liquidity. Most of the large funds have “fled” the market, fearing the inability to execute supply contracts.
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Daily changes on cocoa. Previously such strong daily increases were recorded in the 1990s. Source: Bloomberg Finance LP, XTB
Stocks continue to fall among traders, showing that the market is still tight. Source: Bloomberg Finance LP, XTB
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