The sharp price changes are due to a lack of liquidity, new regulations and market speculation.
On this week, prices for cocoa fell by 28%, on Friday it fell in price to $6,990 per ton, continuing the pullback from a record level.
Bloomberg writes about this.
Futures are capping one of the craziest periods the market has ever seen.
Just two weeks ago, prices hit a record of nearly $12,000 a ton as the industry grappled with the fallout from a severe supply shortage.
But the fall this week sent futures down about 40% from their all-time high, with prices swinging wildly after an outflow of traders that sapped liquidity.
The pullback marked a sharp turnaround in cocoa prices, which became more expensive than copper. Prices have soared as a poor harvest in West Africa leaves the world facing a third year of shortages, stressing shoppers and making chocolate more expensive.
“It's important to note that the recent decline in cocoa prices is primarily “The result of trading maneuvers rather than changes in market fundamentals,” said analysts at BMI Fitch Solutions, adding that they expect volatility to continue.
In other commodities, robusta coffee futures fell in London on Friday to its lowest level in a month, at the same time, signs of rising inventories eased concerns about supplies.
It was previously reported that prices for chocolate and chocolate products will rise almost doubled due to the increase in the cost of raw materials.