Cocoa Futures Trading Basics

Cocoa futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of cocoa (eg. 10 tonnes) at a predetermined price on a future delivery date.

Cocoa Futures Exchanges

You can trade Cocoa futures at NYSE Euronext (Euronext) and New York Mercantile Exchange (NYMEX).

Euronext Cocoa futures prices are quoted in pounds per metric ton and are traded in lot sizes of 10 tonnes .

NYMEX Cocoa futures are traded in units of 10 tonnes and contract prices are quoted in dollars per metric ton.

Exchange & Product NameSymbolContract SizeInitial Margin
Euronext Cocoa Futures
(Price Quotes)
C10 tonnes
(Full Contract Spec)
GBP 1,350 (approx. 7%)
(Latest Margin Info)
NYMEX Cocoa Futures
(Price Quotes)
CJ10 tonnes
(Full Contract Spec)
USD 2,700 (approx. 11%)
(Latest Margin Info)

Cocoa Futures Trading Basics

Consumers and producers of cocoa can manage cocoa price risk by purchasing and selling cocoa futures. Cocoa producers can employ a short hedge to lock in a selling price for the cocoa they produce while businesses that require cocoa can utilize a long hedge to secure a purchase price for the commodity they need.

Cocoa futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable cocoa price movement. Speculators buy cocoa futures when they believe that cocoa prices will go up. Conversely, they will sell cocoa futures when they think that cocoa prices will fall.

Learn More About Cocoa Futures & Options Trading

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