Cocoa Futures Margin & Contract Specifications

What Are Cocoa Futures?

Cocoa futures (symbol CC) are standardized contracts based on cocoa beans, traded on the Intercontinental Exchange (ICE). Each contract represents 10 metric tons of cocoa beans and is quoted in U.S. dollars per metric ton. Cocoa beans are the primary raw material for chocolate production, so demand is closely tied to the food industry and global consumption trends. Since cocoa production is concentrated in West Africa (Ivory Coast, Ghana) and parts of Central and South America, weather, political stability, and supply chain conditions have a major impact on prices.

Factors Affecting Cocoa Prices

Supply from producing regions:

West Africa is the world’s main supplier. Droughts, floods, or crop diseases can significantly reduce output.

Geopolitics and labor conditions:

Political instability, export policies, or labor disputes in producing countries can disrupt supply and drive prices higher.

U.S. dollar movements:

As cocoa is priced in U.S. dollars, a stronger dollar increases costs for importing countries, which may reduce demand.

Global consumption demand:

Chocolate demand peaks during festive seasons (e.g., Christmas, Valentine’s Day). Conversely, during global economic downturns, consumption may decline.

Substitutes and sugar price linkage:

Demand for chocolate products is also influenced by sugar and dairy prices.

Speculative capital flows:

The entry and exit of commodity funds and speculators can cause short-term volatility.

Trading Hours and Holidays

ICE Futures U.S. electronic trading (WebICE platform):

• Trading days: Monday to Friday
• Taiwan time: opens at around 5:45 PM, closes the next day at 2:30 AM (times may vary with daylight saving)

Market holidays:

Adjusted according to the ICE holiday schedule.

Summary

Cocoa futures (CC) are a key product among soft commodities, mainly reflecting global supply and demand in the chocolate industry.

Advantages: Unlike energy or metals, cocoa is a soft commodity and can help diversify an investment portfolio.

Disadvantages: Highly sensitive to weather, political, and labor-related issues, making price movements difficult to predict.

Therefore, cocoa futures are not only an important hedging tool for food companies but also a popular way for investors to participate in the agricultural commodities market.

Cocoa Margin

How much money is needed to trade futures? At the beginning, the required margin is the initial margin. While holding a position, the margin after deducting floating profits and losses must remain above the maintenance margin; otherwise, a margin call will be issued. For day-trading margin, only half of the margin is required, provided the position is closed before the market closes.

Foreign Futures

Cocoa Contract Specifications

Here is a summary for traders of the contract specifications, exchange, trading hours, minimum price fluctuation, and available trading months for CocoaFutures.

CocoaLast Trading Day

Futures