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Cocoa Extends Last Week’s Steep Drop in Thin Holiday Trading - BLOOMBERG
, Bloomberg News
, ICE Futures US
(Bloomberg) -- Cocoa futures in New York fell Monday, extending last week’s steep declines, as trading volume slowed during the London bank holiday.
Most-active futures sank as much as 6.9% on Monday as the number of contracts traded slumped. The start of trading in cocoa and other softs in New York was delayed due to the holiday, and London markets were closed.
Monday’s drop extended losses from last week, when markets plummeted 23% — the biggest weekly drop in data going back to 1959. Volatility has risen as higher margin requirements have led traders to exit the market on all sides.
Total long-only positions sank to the lowest in more than three years and short-only positions fell to the lowest in over seven years, according to Commodity Futures Trading Commission data released Friday. Net bullish bets were at a 14-month low.
