Navigating Cocoa Prices: A Quick Primer On Market Trends And Trading Strategies - Seeking Alpha

For many years, the price of cocoa drifted in a relatively well-defined range. As late as 2020, I wrote about trading that range from my perspective as a cocoa permabull. Unfortunately, liquidity in the iPath® Bloomberg Cocoa Subindex Total Return(SM) ETN (NIB) dried up over time, and NIB was finally delisted in June 2023. The loss of the best vehicle for retail investors to participate in cocoa trading coincided with a with strong rally in cocoa. The very next month, the price of cocoa broke out and proceeded to quadruple in a stunning run-up. The weekly chart below of the cocoa cash contract showcases the scale of the move.

seekingalpha.com     May 05, 2024