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re: Cocoa Futures

Posted on 11/27/12 at 7:24 am to
Posted by LSU0358
Member since Jan 2005
7920 posts
Posted on 11/27/12 at 7:24 am to
quote:

I've seen the date 2020 thrown around in some of my short research. It would be a hell of a gamble if I did decide to do it.


I wouldn't recommend trading futures out that far. There are several things that can come into play that could effect the price of cocoa, even in a supply crunch. Say the US dollar doubles in value relative to other currencies, all the sudden your cocoa value went down 50%.

Also, don't think you can buy contracts that far out in anything except maybe crude oil and natural gas.
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