<div id="readability-page-1"><div>Cocoa futures in New York crashed Monday in their biggest daily drawdown on record, driven mostly byimproved weather forecasts andsliding liquidity.&#34;Cocoa prices are melting down. New York and London cocoa futures are down ~15% today (that's, by far, the largest one-day % drop in data going back nearly 65 years),&#34;Bloomberg'sJavier Blas wrote on X.<blockquote>CHART OF THE DAY: Cocoa prices are melting down. New York and London cocoa futures are down ~15% today (that's, by far, the largest one-day % drop in data going back nearly 65 years). #cocoa #chocflation https://t.co/hzcOgHkC2U pic.twitter.com/a3BxC9XjCw— Javier Blas (@JavierBlas) April 29, 2024</blockquote>Futures fell 15% to $8,931 a ton,having hita record high of$11,722 on April 19.<img height="271" width="500" src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/Snag_6a77b5e.png/query-aXRvaz12WkpzRW8zaA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/Snag_6a77b5e.png/query-aXRvaz12WkpzRW8zaA"/>On April 9, during the surge from $9,000 to nearly $12,000, Blas warned:&#34;Liquidity in cocoa markets is quickly evaporating.&#34;<img height="273" width="500" src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/Unknown_1.png/query-aXRvaz02RnV5d0s5bA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/Unknown_1.png/query-aXRvaz02RnV5d0s5bA"/>Saxo Bank's head of commodity strategy, Ole Hansen, explained toDow Jones Newswires that today's selloff was triggered by an improving weather forecast for rain inWest Africa, the mecca of cocoa farming.Thiswill only boost the bean outlook formid-season crops. He also noted that the front contract showed strong signs of 'buyer fatigue.'&#34;Liquidity in the market due to the intense volatility of cocoa's prices has also disappeared, so any kind of news--good or bad--will trigger strong fluctuations in price,&#34;Hansen said, adding that the latestcommitment of traders report exhibitedbroad selling from commercial traders, with the long exposure sliding to a 14-month low as traders panic exit the chaotic market.Despite the cocoa plunge,London-based trading and agricultural consultantPaulo Torres told Bloomberg,&#34;The shortage is not over&#34; and &#34;theelephant in the room is the fact that Ivory Coast and Ghana do not have cocoa, so there is no way prices can fall significantly.&#34;</div>Loading...</div>

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Cocoa futures in New York experienced their largest one-day drop in nearly 65 years, falling 15% due to improved weather forecasts and sliding liquidity. Despite the plunge, experts believe the cocoa shortage is not over.

Cocoa Crash Unfolds As "Liquidity Evaporates"