Patterns in the cocoa futures market in the United States of America
The short-run supply of cocoa beans from the areas of production is a function of the extent of harvesting. In the long-run, the extent of new planting, disease control and price are the important considerations. The rehabilitation programmes of the cocoa producing countries will have the important long-run effect of increasing world supplies of cocoa beans. There is a close relationship between supply and demand for cocoa beans, both of which have exhibited an upward trend since the first world war. Cocoa prices have, however, fluctuated violently over the period. The wide annual price fluctuations have persisted after the establishment of the New York Cocoa Exchange. Price instability has been attributed to futures trading, and the futures market will be eliminated if prices are stabilised. Prices, sales and stocks are closely related, and a change in one is reflected in a corresponding change in the other. There is also a close positive correlation between stocks and the volume of trading and a fair degree of negative correlation between prices on one hand and stocks on the other. The level of use of the futures market is closely related to stocks in the United States. Thus the level of stocks in New York has an important influence on cocoa marketing activity
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| Format: | biblioteca |
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Tafo (Ghana)
1971
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| Subjects: | CACAO, MERCADEO, MERCADO DE FUTUROS, EXPORTACIONES, IMPORTACIONES, PRECIOS, BALANZA COMERCIAL, ESTADOS UNIDOS DE AMERICA, |
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