Commodities Return to Decline, Led by Cocoa, Soybean
The lack of positive news from the European Union spurred the return of the downward rally in commodities. Significant drops are seen in the cocoa and soybean futures. The decline was also notable for speculative precious metals — silver and gold.
Investors wait for the European officials to agree on the Greece
Cocoa was in an uptrend during the last two days and has now lost a half of its gain. Soybeans haven’t really stopped falling and now demonstrate the strongest decline since Friday. Both these agriculture commodities depend heavily on the state of the global economy. As a considerable part of their recent growth can be attributed to speculative buying, these positions are now getting closed by the traders to cover up losses in more “serious” markets — stocks and bonds.
Cocoa December futures fell from $2,704 to $2,654 per 10 metric tons as of 16:38 GMT on ICE today with an intraday low at $2,630. Soybeans November futures declined from $1,260.50 to $1,238.50 per 5,000 bushels on ECBOT.
If you have any questions and comments on the commodities today, use the form below to reply.