The precious value of the cocoa bean has long been known. It has even been used as a form of currency in Central and South America before the Spanish conquest. Just as it was a royal luxury in Renaissance Spain, cocoa today is predominantly enjoyed by the wealthier economies such as the U.S., Netherlands, and Germany. Today, it is recognized that cocoa futures represent the benchmark for the world cocoa market.
|Cocoa Contract Specifications|
|Contract Size||10 metric tons|
|Price Quotation||Dollars per metric tons|
|Contract Months||March, May, July, September, December|
|Minimum Fluctuation||$1.00/metric ton, equivalent to $10.00 per contract.|
|Settlement Procedure||Physical Delivery|
|Daily Price Limit||none|
|Delivery Growths||The growth of any country or clime, including new or yet unknown growths. Growths are divided into three classifications. Group A-Deliverable at a premium of $160/ton (including main crops of Ghana, Lome, Nigeria, Ivory Coast and Sierra Leone). Group B-Deliverable at a premium of $80/ton (includes Bahia, Arriba, Venezuela,Sanchez among others). Group C-Deliverable at par (includes Haiti, Malaysia and all others).|
|Delivery Points||At licensed warehouses in the Port of New York District, Delaware River Port District, Port of Hampton Roads, Port of Albany or Port of Baltimore.|
|First Day Notice||Ten business days prior to first business day of delivery month.|
|Last Trading Day||One business day prior to last notice day.|
|Last Notice Day||Ten business days prior to last business day of delivery month.|
Cocoa is a powder derived from the fruit seeds of the cacao tree. It was referred as “the fruit of the gods” when it was first discovered in South America and was used as both a currency and a base of a drink. Historical evidence tells us that cocoa has been consumed for thousands of years. Today, about 3 million metric tons of cocoa are produced each year. The largest user of cocoa is the chocolate industry, but cocoa is also used in many non-food products including makeup and soap.
Cocoa is produced in warm climates like rainforests, near the equator. There are four major West African cocoa producers: the Ivory Coast, Ghana, Nigeria and Cameroon. These nations account for two-thirds of the world’s cocoa production. Other producers include: Indonesia, Brazil, Malaysia, Ecuador, and the Dominican Republic. Cocoa begins as a seed that eventually germinates and produces a plant. The plant can be grown in many soil types. Cocoa trees usually take 3-5 years to mature and can live for up to 50 years. When cocoa beans are produced, it takes about 6 months for them to ripen.
Last updated May 2013
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- Trade Spotlight: Futures – Weekly Summary: Bean Oil, Cocoa, Pound (4/10/2020) - Stopped out of the Natrual Gas position. Working an order in the Cocoa futures market.
- Beyond the Spotlight: April 6, 2020 (Pound, Bean Oil, Cocoa ) (4/6/2020) - Beyond the Spotlight is a weekly video released on Mondays that spotlights two or three markets that may become trading opportunities for the week ahead. This enables you as a subscriber of the Trade Spotlight advisory service to look ahead with us, while potentially creating additional trading opportunities for yourself. The week’s video linked below… Read more.
- Trade Spotlight: Futures – Weekly Summary: Cocoa (4/5/2020) - Stopped out of the Natrual Gas position. Working an order in the Cocoa futures market.