Cocoa tracker?

[colly601]

Hi all,

The price of Cocoa is rather low at the moment, so I'm looking to get some mid-term exposure. Since futures and CFDs scare me, I'm wondering if there's a good ETF available to get longer term exposure to the price without getting too exposed to intraday fluctuations?

futures and CFDs can seem daunting especially if you're not comfortable with intraday fluctuations. An ETF could indeed be a more suitable option for mid-term exposure to cocoa prices.

One ETF you might want to consider is the iPath Bloomberg Cocoa Subindex Total Return ETN (NIB) if no one brought that up yet, It tracks the performance of cocoa futures contracts and offers exposure to cocoa prices without the need to directly trade futures. This can provide a more stable investment experience over the mid-term imo

 

[peter2]

Couldn't find NIB using TradingView.



Look like futures and CFDs are the only way to trade it.

Edit: Found two ETF funds that track cocoa on the Italian and London exchanges.

 

[peter2]

Breaking news: Chocolate and Coca Pops to be considered luxury items soon.

 

[debtfree]

Summary: Cocoa futures sank to below $9,500 per tonne, touching levels not seen in 3 weeks, as traders took advantage of their long positions. This marked the largest one-day loss ever, following its recent 3-day rally that sent the prices to record high of $12,800 per tonne. Furthermore, cocoa is facing downward pressure stemming from last Thursday's report from Nigeria, the world's fifth-largest cocoa producer, indicating that its March cocoa exports surged by 19% YOY to 22,199 metric tons. Cocoa prices have been receiving support from the expectation of tight global cocoa supplies, soaring to record highs multiple times in recent months, with a year-to-date increase of over 100%. Cocoa harvests are coming up short for the third year in a row as above-average rain in key growing regions has resulted in more crop disease. Latest data showed that Ivory Coast, the world's largest producer, shipped 1.34 MMT of cocoa to ports from October 1 to April 28, down by 30% from the same time last year.​

Stats: Cocoa increased 5,440.59 USD/MT or 129.66% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Historically, Cocoa reached an all time high of 12261 in April of 2024. Cocoa - data, forecasts, historical chart - was last updated on April 29 of 2024.
From Trading Economics
Have we seen the top?

Sorry abut the bold above I couldn't change it.

 

[noirua]

I do not know much about trading cocoa or any idea which companies trade in it. Anyway, an article by J.P.Morgan that goes on a bit: https://www.jpmorgan.com/insights/global-research/commodities/cocoa-prices

The rise in cocoa prices is largely due to a global cocoa shortage. Climate change-induced drought has ravaged crops in West Africa, which contributes around 80% of the world’s cocoa output. According to the International Cocoa Organization, global cocoa supply will decline by almost 11% over the 2023/2024 season.