Cocoa Price Swings Are the Craziest Since the 1970s.

Cocoa prices in New York have become extremely volatile, reaching levels not seen since the 1970s. This volatility is due to uncertainty surrounding a cocoa shortage and traders exiting the market. Poor harvests in West Africa have caused cocoa futures to rise by 160% this year, but the high prices have made it more expensive for investors to maintain their positions, leading them to close out trades. This has resulted in a decrease in open interest and increased price swings. While there is hope for improved global production next season, the market remains uncertain. [Extracted from the article]