Cocoa prices have increased 26% since August due as traders speculating on dry weather during the main development period of West African crops, which could hurt the quantity and quality of the beans. About 70% of the world’s cocoa comes from this region.
The CHOC and NIB ETNs track different cocoa contracts. During the futures “roll” period, CHOC’s index “may be comprised of two futures contracts” instead of just a single contract. NIB only uses one futures contract in its methodology. [ETF Chart of the Day: Tastes Like Chocolate]
iPath DJ-UBS Cocoa TR Sub-Index ETN
For more information on cocoa, visit our cocoa category.
Max Chen contributed to this article.