Cocoa prices took a significant hit today, falling by 11% to a low of $7,901 per tonne. This drop marks the lowest level for cocoa since May 27, when it traded at $7,869. The decline in prices is attributed to concerns about the upcoming second-quarter global cocoa demand reports, which are expected to show record-high prices leading to potential demand destruction.
Despite today’s drop, cocoa prices are still up 88.4% year-to-date, making it on track for its best year since 1980.
In other news, the stock market opened flat on Monday, with the S&P 500 showing little change at the start of the trading session. The Dow Jones Industrial Average saw a slight increase of 0.2%, while the Nasdaq Composite fell by 0.2%.
Meanwhile, Chicago Federal Reserve President Austan Goolsbee suggested that interest rates may need to come down if inflation remains soft and economic conditions continue to slow. Goolsbee emphasized the importance of monitoring inflation data and its impact on the overall economy.
Additionally, Bank of America’s chief equity technical strategist Stephen Suttmeier noted that stocks remain overbought despite reaching record highs. He attributed the lack of market volatility to seasonality, the upcoming 2024 election, and a significant amount of cash sitting on the sidelines.
In premarket trading, several stocks made notable moves, including ResMed, Carrier Global, and Anheuser-Busch InBev. These companies experienced fluctuations based on recent news and analyst upgrades.
Overall, the market continues to show resilience, with various factors influencing stock prices and market trends. Stay tuned for more updates on the latest developments in the financial world.
