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Posted November 10, 2026 at 11:15 am
London cocoa dropped 5.5% to £3,687 a ton and raw sugar hit a five-week low as funds added to shorts and physical buying stayed weak.
What’s going on here?
Cocoa and sugar futures fell as hedge funds added to short bets and traders flagged weak physical buying, raising worries that demand for chocolate and sweets is cooling, Reuters reported.
What does this mean?
The selloff hit both benchmark cocoa contracts: London futures dropped 5.5% to £3,687 a metric ton after dipping to a four-month low, and New York cocoa fell 6.6% to about $4,784 a ton. Traders said the momentum has flipped negative after London cocoa closed below £4,000 on Monday, which can draw in trend-following funds and deepen declines. Softer end-demand is part of the story too: when manufacturers buy less cocoa in the physical market, exchange-monitored inventories can build, which tends to lean on prices. Sugar echoed the tone, with raw sugar down to 18.06 cents per pound after a five-week low, even as supply headlines stayed mixed, from slower Ivory Coast port arrivals to Pakistan floating exports.
Why should I care?
For you: London cocoa at £3,687 a ton won’t instantly cheapen your chocolate bar.
Big food companies typically lock in key ingredients months ahead using futures and other hedges, which are basically pre-agreed prices. When cocoa and sugar fall, the next round of hedges gets cheaper, but the benefit shows up with a delay as older, higher-priced coverage rolls off and new contracts replace it. That’s why grocery-store prices often move slowly: cheaper inputs are more likely to translate into fewer price increases and more promotions before you see clear, across-the-board price cuts.
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Originally Posted November 10, 2026 – Cocoa And Sugar Slide As Traders Brace For Softer Demand
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Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading futures, please read the CFTC Risk Disclosure. A copy and additional information are available at ibkr.com.
Short selling is an advanced trading strategy involving potentially unlimited risks and must be done in a margin account.
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