Customs workers in the Ivory Coast – the world’s top exporter of the beans which are made into chocolate – continued striking today, preventing the export or import of most goods, including cocoa shipments. Despite this supply disruption, cocoa futures dropped sharply today.
On the Liffe, cocoa futures for September delivery slid 2.84 percent to £2,132 per metric ton ($3,348) On the IntercontinentalExchange, Cocoa futures for September delivery dropped over 3 percent to $2,923 per metric ton.
Apparently, the prospects for an improved cocoa crop from the Ivory Coast outweighed the short-term disruption of the striking customs officials, reported Bloomberg.
The strikers complain that they have not been paid monthly bonsues of $70 that they are meant to receive.
“All goods have been blocked, which includes cocoa,” strike leader Michel Delihisson told Bloomberg News over the phone. Delihisson is the secretary general of the Union for the Defense of Rights for Customs Officers. “If any cocoa is leaving the country, it will be cocoa that hasn’t been certified by customs.”
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
