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COCOA/USD CASH Trading
Cocoa History
Cocoa, popularly known for producing chocolate, is a highly traded commodity. Cocoa was used by ancient tribes as early as 600AD and exported to Europe in 1585, and it has a rich and interesting history. Today, it attracts investors almost as much as chocolate lovers, with the cocoa market reportedly worth more than $2.1B (USD).
What are the different cocoa varieties?
Cocoa varieties are three, with the most common type being Forastero which accounts for roughly 80% of production. The other two types of cocoa are Criollo, the rarest variety, and the Trinitario, a hybrid cocoa bean that ranges between average and superior quality. If the quality of the bean is high, it means it has better taste and a higher market price.
Which are the top cocoa-producing countries?
There are three top cocoa producers: West African countries like Cote d’Ivoire (Ivory Coast), Ghana, and Latin American countries like Brazil and Ecuador. The most responsible for the majority of cocoa production globally is West Africa.
What can move the price of cocoa?
The price of cocoa can be affected by factors such as changing weather conditions, distribution costs, geopolitics, global health issues and the strength of the US dollar. Also, the price of cocoa is moved by factors that relate to supply and demand.
Cocoa News
Cocoa futures traded around $2500 (USD) an ounce as traders weighed expectations of lower global demand against supply constraints. The Russian invasion of Ukraine will probably decrease the consumption of goods like chocolate and coffee as there will be restrictions on travel and airports where most of the sales occur. This follows a time when the demand for chocolate and coffee is still recovering from the COVID-19 pandemic. Additionally, farmers worry that the continuous lack of rains in the top growing regions of the Ivory Coast will damage the quality of beans and could reduce the size of the April-to-September mid-crop.
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Cocoa trading FAQ
Why is cocoa trading significant for traders?
Why is cocoa trading
significant for traders?
Although cocoa is one of the world’s smallest soft commodity markets, it has international implications on food and candy producers and the retail industry. Cocoa prices displayed in Trading Economics are based on over-the-counter and CFDs financial instruments.
What is the right cocoa trading strategy?
What is the right cocoa
trading strategy?
Cocoa trading strategies depend on the trader’s knowledge of technical indicators and their personal preferences and expectations. In general, traders could employ a breakout trading strategy, a fundamental trading strategy or a range trading strategy.
What are the benefits of commodities trading?
What are the benefits of
commodities trading?
Trading commodities CFDs ("Contracts for Difference") is a great way to diversify your portfolio and hedge risks. FP Markets has carved a niche for itself in the commodity trading market in Australia, offering the optimal trading experience. Traders can choose from a variety of commodities such as energy metals and agricultural products and enter or exit the market 24/5 across almost all commodities markets.
What is the best platform to trade commodities?
What is the best platform
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Where Can I Find a Trusted Forex Broker to Trade Commodities?
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With FP Markets , a Global-regulated broker provider, you get access to commodity prices worldwide with high execution speed, deep liquidity, tight spreads and low slippage. You can trade CFDs on a variety of products while benefiting from the latest real-time technology.