This week’s market action demonstrated the ability of some investors to endure pain. Others were pushed out of their equities and other elements of their portfolios by margin calls. After five days of losses, equity markets recovered substantially from Wednesday’s low.
Data showed that the U.S. economy contracted by 1% during the first quarter of the year. Consumer spending declined in April, the first decline in a year even though disposable income rose. The overall economic picture remains bleak.
Ivorian port cocoa arrivals have been very strong. Since the main crop harvest began in October, 868,000 tonnes of cocoa beans have been delivered. That compares with just over 600,000 tonnes at this juncture of the marketing year over the past few seasons.
The commodity slump that spurred bear markets in everything from gold to corn to sugar this year will deepen by the end of December as prices head for their first annual loss since 2008, if history is any guide.