We have been anxiously waiting to see what market would be the first to break down to new 2011 lows- that is, below the Oct 3rd/4th lows made in nearly every ‘risk on’ market. And the winner of that first place in the race to last in pricing is… (drum roll please) Cocoa.
Not sure why the Italian bond stunner yesterday would have caused this plummet (do Italians eat that much chocolate?), but in any case, and to be fair, Cocoa didn’t have quite the ‘risk on’ rally that everything from Crude Oil to Sugar to Copper did in October, and it doesn’t quite have a long history of leading the markets. Still, we’re pretty certain it won’t be the only market to break back down to new 2011 lows. Wheat, Soybeans, and (for the obvious choice) the Euro are all prime candidates to repeat this sort of move.
For all those who were waiting for better prices to buy their Christmas chocolates, now might be the time…