Nations in West Africa are likely to have sold as many as 250,000 metric tons of the soft commodity during the past two-plus weeks, futures and options brokerage Marex Spectron Group of London said on Monday. The Ivory Coast is the globe's top grower and shipper of the soft commodity, trailed by Ghana. The performance on Tuesday comes after the commodity endured losses as high as 1.3 percent.
"Cocoa collapsed yesterday because speculators bought more – mostly covering shorts – than initially thought," states a Tuesday email to Bloomberg authored by agriculture options brokerage Eric Sivry with Marex Spectron. "With origins having sold a lot recently, selling pressure has been slightly removed."
At 9:22 a.m. on Tuesday, cocoa futures rose 1.69 percent, a $39 lift to $2,349 per metric ton.
The Business Recorder reports cocoa futures endured their sharpest losses in one month on Monday, which came after the soft commodity had pushed to its top price in about 120 days just last week.
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