The global cocoa market had experienced a fluctuated trend during the year of 2016. There were a lot of upward and downward movements on the cocoa parity, so investing on the cocoa market was so risky during the last year. When we look at the beginning of the year, the parity opened with the level of 3.017,00. On 24th April, the parity tested 3.207,00 level which was the highest point of the year. With starting the month of November, the parity started to decrease strongly. At the last days of the year, the parity tested under the 2.300,00 level which was the lowest level of the year.
Cocoa is grown in South America, West Africa and some islands with similar climate, and is produced mostly by Ivory Coast, Ghana, and South American countries on a country basis. Even the small changes in the climatic conditions of the mentioned countries and regions are affecting this sensitive plant. On the other hand, we can say that one of the factors that make up the fluctuation in the cocoa market is that we can already say that there are occasional sharp weather changes in these regions. Because cocoa prices are affected very much by the natural phenomena in the dominant cultivating countries and the climate trend. Due to bad weather conditions, prices may rise rapidly if there is not enough supply to meet the global demand. On the other hand, in some years everything is going well, and there are also situations such as the appearance of excess supply. In such cases, prices can fall sharply.
As the technical side, the first 2017 expectations about cacao market will be a bit negative for the first days of new year. The support level will be 2.285,00 and the resistance level will be 2.450,00.
- Date: 11 December 2016 Sun 01:59
- Last Added
French Presidential elections are affecting the positive atmosphere on Euro
French Presidential elections are affecting the positive atmosphere on Euro...
Inflation rate is testing record levels in Turkey
Inflation rate is testing record levels in Turkey...
Non-farm payrolls data of the USA increased
Non-farm payrolls data of the USA increased...
Fed's politics interest decision gives direction to the global markets
Fed's politics interest decision gives direction to the global markets...
Oil market is trying to find a direction
Oil market is trying to find a direction at the last times....