re: Cocoa Futures

I don't see a date for the article itself, but I see comments dating back to February 13, 2012, which is ancient history as far as we're concerned. In addition this is a risky, directional trade. Looking at Cocoa Futures specs on the CME Group's website, it would require a minimum margin account of $1,870, with each tick representing a $10 movement. In addition you'll have to put down another margin account for your short position of ADM shares. If you're really knowledgeable about cocoa futures and ADM's hedging practices, then maybe you can try out this trade. However with these margin accounts and short-sales, you can go bust on your trade even though you're correct. Timing is a big deal here.