FX.co ★ Cocoa Futures Plunge

Cocoa futures saw a significant drop of over 8%, falling to nearly $5,500 per tonne, marking their lowest point since early December. This decline was attributed to some traders seizing the opportunity to take profits and adjust their positions. They had initially placed bets on the flow of investments linked to the re-inclusion of cocoa futures contracts in the Bloomberg Commodity Index (BCOM) starting January 8. The re-inclusion was anticipated to result in around 30,000–40,000 lots of index-related purchases by January 14. Meanwhile, the market is anticipating the release of the Q4 grinding data for Europe, the US, and Asia next week, which is expected to confirm continued weak demand.