Cocoa beans are the primary ingredient in the chocolate confectionery enjoyed by people worldwide. Cocoa beans require a tropical climate and tend to thrive in countries close to the equator. The West African nations of the Ivory Coast and Ghana produce over 60% of the world’s supplies each year.
For many years, London has been the international hub for cocoa trading. Therefore, the many physical contracts use the British pound as a pricing mechanism, making the price sensitive to the pound’s value against other world currencies. Meanwhile, cocoa trades on the Intercontinental Exchange, and the