Cocoa prices fall ahead of Ivory Coast presidential election
Tensions are mounting a few days before the Ivory Coast presidential election. Despite the term limits outlined in the country’s new constitution, current incumbent President Ouattara is running for a third term despite protests and a campaign to boycott the election. The UN is calling for calm and an end to violent outbreaks in recent weeks.
After hitting near-term price highs back in September, a consistent month of selling pressure has moved cocoa prices down by over $350. Without question, positions are changing hands as speculative funds liquidate and sell into weakness as industrial users extend cover. Weaker prices came fortuitously just prior to the presidential vote as buyers took on post-election insurance, enabling them to extend positions well into 2021.
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