Today Markets global financial markets
ONE PLATFORM MULTIPLE MARKETS
WELCOME TO TODAY MARKETS

Your Gateway to Global Markets

Welcome to Today Markets — an offshore CFD trading destination built for traders looking for access to global financial markets, powerful trading technology and a better online trading experience.

As part of a broader financial group with regulated businesses and financial technology companies operating across multiple markets, Today Markets combines market access, technology, education and guidance in one connected experience.

Whether you are taking your first steps in trading or looking to develop your market knowledge further, we are here to help you understand the markets, access the tools you need and trade with greater awareness.

Global Markets Access multiple asset classes from one platform.
Trading Technology Powerful tools and professional trading platforms.
Market Education Analysis, education and insights to help you learn.
◆
Global Markets Multiple asset classes
◆
Powerful Technology Professional trading platforms
◆
Market Intelligence Analysis, education and insights
Start Trading
Cocoa Futures and Cocoa Trading
Commodity Trading Guide

Cocoa Futures:
Cocoa Trading Basics

Discover what drives the cocoa market, how cocoa futures work, the countries that produce the world's cocoa and the strategies traders use to analyse changing cocoa prices.

Cocoa Trading Basics

From ancient crops to a global financial market

Cocoa has a rich and fascinating history. Used by ancient tribes as early as 600 AD and exported to Europe from the 16th century, cocoa has grown into one of the world's most important agricultural commodities.

Today, cocoa attracts traders almost as much as it attracts chocolate lovers. Its price can be influenced by weather, production levels, geopolitics, labour issues, crop diseases, currency movements and global demand.

Understanding these factors is essential for anyone considering trading cocoa futures or gaining exposure to the wider cocoa market.

$2.1B+
Reported value of the global cocoa market

Cocoa is one of the world's most actively traded agricultural commodities and remains highly sensitive to changes in supply and demand.

Global Supply

Top cocoa-producing countries

West Africa is responsible for the majority of global cocoa production. The world's leading producers play a significant role in determining global supply and can therefore have a major impact on cocoa prices.

Rank Top Producer Cocoa Production
1 Ivory Coast 1.45 million tonnes
2 Ghana 0.84 million tonnes
3 Indonesia 0.78 million tonnes
4 Nigeria 0.37 million tonnes
5 Cameroon 0.28 million tonnes
The Cocoa Market

What are the different cocoa varieties?

There are three main cocoa varieties. The quality and characteristics of each variety can influence the taste, demand and market value of the resulting cocoa.

01

Criollo

Criollo is the rarest cocoa variety and accounts for approximately 5% of global production. It is generally associated with higher quality and distinctive flavour characteristics.

02

Forastero

Forastero is the most common cocoa variety, accounting for roughly 80% of global production. It is widely cultivated due to its productivity and resilience.

03

Trinitario

Trinitario is a hybrid variety that combines characteristics of Criollo and Forastero. Its quality can range from average to superior, depending on the beans and growing conditions.

Market Drivers

What moves the price of cocoa?

Cocoa prices are primarily driven by supply and demand. When demand exceeds available supply, prices can rise. When supply exceeds demand, prices may fall.

☁
The Climate
◉
Labour Issues
◆
Geopolitics
+
Global Health Trends
!
Crop Diseases
£
Currency Movements

The climate

Cocoa plantations are highly sensitive to weather conditions. They require a warm climate and regular rainfall. Harsh weather can damage crops and reduce the supply of healthy cocoa beans, potentially putting upward pressure on prices.

Labour issues

Cocoa production relies heavily on labour costs. Changes to wages, labour regulations or workforce availability in major producing countries can affect production costs and global supply.

Geopolitics

Political uncertainty, corruption and unrest in cocoa-producing countries can disrupt production and supply chains, potentially creating increased volatility in global cocoa markets.

Global health trends

Consumer attitudes towards chocolate and changing health trends can influence long-term demand for cocoa. Shifts in consumer preferences may affect the market over time.

Crop diseases

Cocoa crops are vulnerable to a number of plant diseases. Serious outbreaks can reduce harvests and limit available supply, which may have a significant effect on cocoa prices.

Currency movements

Cocoa is traditionally priced in British pounds. Changes in the value of GBP can therefore affect the price of cocoa for market participants trading in other currencies.

Trading Approaches

Cocoa trading strategies

Cocoa trading strategies depend on a trader's market knowledge, risk tolerance and preferred method of analysis. Three commonly used approaches include range trading, breakout trading and fundamental analysis.

Technical

Range trading strategy

Range traders identify support and resistance levels and look to buy near support and sell near resistance. This approach can be useful in markets that move within a defined range without a clear long-term trend.

Momentum

Breakout trading strategy

Breakout traders attempt to identify the early stages of a new trend. A position may be considered when prices move above resistance or below support, depending on the trader's analysis.

Fundamental

Fundamental trading strategy

Fundamental traders focus on supply and demand factors, including weather, harvest expectations, geopolitical events, production changes and consumer demand.

Getting Started

Four steps to start trading cocoa

Choose a cocoa asset

Decide which type of exposure to the cocoa market best suits your objectives, including futures, CFDs, shares or ETFs.

Decide how to trade

Choose a trading method and financial instrument that matches your strategy, experience and risk appetite.

Create a risk strategy

Consider using appropriate risk management tools, including stops and limits, to help manage potential losses.

Open and monitor

Once your analysis is complete, open your position and monitor developments that could affect cocoa prices.

Market Access

How can you trade cocoa?

There are several ways to gain exposure to the cocoa market. Your choice will depend on whether you want direct exposure to commodity prices, leveraged trading opportunities or exposure to companies connected to the cocoa industry.

Cocoa futures

Futures are contracts to exchange a set amount of an underlying commodity at a predetermined price and date. Cocoa futures are traded on futures exchanges and are one of the most established ways to gain exposure to cocoa prices.

Cocoa CFDs

CFDs allow traders to speculate on price movements without taking ownership of the underlying commodity. Traders can potentially speculate on both rising and falling cocoa prices.

CFDs use leverage, meaning that a relatively small amount of capital can provide exposure to a larger position. Leverage can magnify both potential profits and potential losses.

Cocoa-related shares

Traders and investors can also gain exposure through shares of companies involved in the wider food, chocolate and cocoa supply chain. The price of these shares may be influenced by cocoa prices as well as company-specific factors.

Exchange-traded funds

ETFs can provide exposure to commodity benchmarks or baskets of companies connected to the cocoa industry, depending on the fund structure.

Risk Management

Build your risk management strategy

All trading involves risk, particularly when trading leveraged products. Before opening a position, traders should consider how much they are prepared to risk and how they will manage potential losses.

Risk management tools such as stop-loss orders can help close a position when the market moves against a trader beyond a chosen level. Limits and other position-management tools may also be used as part of a broader trading plan.

A trading plan should consider:
  • Position size
  • Potential volatility
  • Stop-loss levels
  • Market-moving events
  • Maximum acceptable loss
Managing a Position

Open and monitor your first cocoa trade

Once you have completed your market analysis and chosen a trading method, you can consider entering the market. When trading cocoa CFDs, traders can speculate on both rising and falling markets.

If you expect prices to rise

A trader may consider opening a buy position if their analysis suggests that cocoa prices could increase.

If you expect prices to fall

A trader may consider opening a sell position if their analysis suggests that cocoa prices could decline.

After opening a position, it is important to monitor the trade and remain aware of developments that could affect the cocoa market, including weather, production data, geopolitics and currency movements.

Market Hours

Cocoa trading hours

Cocoa futures are traded across global markets. The following indicative trading hours are based on the relevant exchange schedules.

Location Cocoa Exchange Trading Hours
New York London Cocoa 04:30 – 11:55 New York time
New York New York Cocoa 04:45 – 13:30 New York time
London London Cocoa 09:30 – 16:55 UK time
London New York Cocoa 09:45 – 18:30 UK time
Singapore London Cocoa 17:30 – 02:30 Singapore time
Singapore New York Cocoa 17:45 – 02:30 Singapore time
Trading hours are set by Intercontinental Exchange (ICE) and may vary. Hours can also change between March and November as the UK and US move between daylight saving and standard time on different dates.
Key Takeaways

Cocoa trading in summary

Cocoa is a globally traded agricultural commodity influenced by production, weather, politics, currencies and changing consumer demand.

  • Cocoa is a major global agricultural commodity market.
  • West African countries account for a significant share of global cocoa production.
  • Weather, labour issues, geopolitics and crop diseases can affect supply.
  • Currency movements can influence cocoa prices and demand.
  • Traders may use range, breakout or fundamental trading strategies.
  • Cocoa can be traded through futures, CFDs, shares and ETFs.
  • CFDs may allow traders to speculate on rising and falling markets.
  • Risk management is an important part of any cocoa trading strategy.

Explore global commodity markets

Learn more about cocoa, commodities and global financial markets before making your next trading decision.

Open an Account Explore Demo Trading
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The information on this page is provided for educational purposes only and does not constitute investment advice, a recommendation or an offer to buy or sell any financial instrument.