Page 2 - MEX Express - Vol 7 Issue 1

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Market Capitalization - Futures Contracts
From January 2015 - March 2015 (in%)
Market Capitalization of all the future contracts listed in the MEX
terminal. Micro Gold has the maximum capitalizaiton followed by Gold
& Small Gold.
Market Capitalization - Spot Contracts
From January 2015 - March 2015 (in%)
Market Capitalization of all the spot contracts listed in the MEX
terminal. Nano Gold continues to have the maximum capitalization
followed by Nano Silver and Brent Crude.
Major Market Movers for Cocoa & Coffee (1st January-31st March 2015)
Prices 250
200
150
100
50
0 2/24/2015
Note:
Date News
1/1/2015 Opening price as of 1st January 2015
1/14/2015 Increase in demand from Asian and Western Markets.
2/2/2015 Demand falls from North America to Europe to Asia
2/24/2015 Valentine day strong demand & supply deficit
3/3/2015 Fall in production in West Africa
3/19/2015 Due to a twist of weak grind data.
3/20/2015 Traders expect less world production
3/30/2015 Good mid-crop production with supply pressure
3/31/2015 Closing price as of 31st March 2015
MEX EXPRESS www.facebook.com/mexhome
FACTS AND FIGURES Volume: 7 • Issue: 1 • Year: 2015 A.D
Know Your Commodities
Cocoa
Introduction 20.6% in 2014; it is considered to be Some Interesting Facts
main port in Europe. United States
Cocoa, also called cacao, is the dried America imported 18.5% of cocoa • The first time cocoa or chocolate was
and fully fermented fatty bean of beans; USA has a large amount of cocoa used as a romantic gesture was in the
Theobroma cacao which is used for the complementary products. Similarly Mayan culture.
extraction of cocoa solids and cocoa other major importers of cocoas are
butter. The Latin name for cocoa Malaysia 10.8%, Germany 8.3%, • It takes a cocoa tree five years to
“Theobroma” which meant, “food of the Belgium 6.0%, France 4.7%, the United produce its first cocoa beans (pods).
gods” is among those valuable crops Kingdom 4.2% and Spain 2.4%. On the
which played a crucial role in several suppliers side, top 5 major producers of • Cacao trees range from 13-26 feet
earliest South American cultures. cocoa are Cote d’lvoire 1.3million tons, tall. Sometimes reaching 32 feet.
History showed that Mayans basically Ghana 720 thousand tons, Indonesia 440
used cocoas to produce a ceremonial thousand tons, Cameroon 175 thousand • Cacao beans used to be a currency.
beverage that was offered during the tons and Nigeria 160 thousand tons. They would once even be given as a
betrothal and marriage ceremonies. dowry when members of the Spanish
Fundamental Facts Royal family married other European
Almost after a century, Spain lost its aristocrats.
control on the European Chocolate • About 70% of the global cocoa is
market. In around mid-1600s, drink produced in West Africa. Cocoa @ MEX
made out of brown beans had increased
popularity in France. It was considered • Ivory Coast and Ghana are the major • Cocoa has been trading initially in
to be enjoyable and a healthy drink producers of cocoas, but due the the futures platform and later on the
enjoyed by the well-off people. unstable political, social and labor spot contracts in the MEX platform.
disputes in the country; the supply
Cocoa trees are found in tropical of the cocoa is not stable. • Cocoa is the agriculture available for
environments, within 15 to 20 degrees trading in the MEX terminal at
latitude from the equator. The perfect • There are 5-6 million cocoa farmers present with initial margin of Rs.
climate for production of cocoa is during worldwide. Livelihood of 40-50 19000 for 2500 Kilogram.
hot, rainy and tropical, with lush million people are depended on
vegetation to provide shade for the cocoa farming. About 90-95%
cocoa trees. Cocoas are primarily found cocoas are produced by small
in Africa, Asia and Latin America. farmers.
Almost 3,000,000 tons of cocoas are
produced every year. Near about 131.7% • As cocoa is the major ingredient to
increment has been noticed in past 30 make chocolates. In order to 1 Kg of
years with an annual growth of 2.9%. chocolate, about 300-600 cocoa are
being processed depending on the
Three main varieties of cocoa are: desired cocoa content.
1. Forastero: Considered to be • Cocoa being strongly co-related to
forefather among the variety of pound rather than dollar as Britain
cocoas. It accounts for some 80% of has prominent domination over West
global cocoa cultivation. Its basic African cocoa industry.
characteristics are powerful, less
aromatic cocoa flavors. • Major influencers of cocoa prices
are Global cocoa and confectionery
2. Trinitarios: It’s a combination of industries.
consumer cocoa along with nice
flavors of luxury cocoas. • Major threats to the cocoa are the
“Black pot” disease; news regarding
3. Criocolla: It is finest among the this disease can highly hamper the
luxury cocoas. These Criollo plants prices of cocoa.
are more prone to fungal diseases,
so smaller yields are produced. As a • Amsterdam is the world’s most
result, these cocoas are very important cocoa port: 500,000-
expensive in comparison to other. 600,000 tonnes of cocoa go through
the port each day.
Netherland stands to be the highest
importer of cocoas. It imports reached
Cocao
Prices 350
300
1/1/2015 250 1/1/2015
1/14/2015 200 1/14/2015
150 1/22/2015
2/2/2015 100 1/27/2015
1/29/2015
50
3/3/2015 0 2/9/2015
3/19/2015 3/3/2015
3/20/2015 Note: 3/19/2015
3/30/2015 3/30/2015
3/31/2015 3/31/2015
Date News
1/1/2015 Opening price as of 1st January 2015
1/14/2015 Declining coffee output
1/22/2015 Recovery in its production compared to the earlier estimates
1/27/2015 Coffee caught the tailwind of the falling dollar
1/29/2015 Falling oil price are making cheaper
2/9/2015 Coffee gets boost from dry outlook in Brazil
3/3/2015 Signs of bigger supplies sent coffee price down
3/19/2015 Weather reports showed dry growing conditions in Brazil
3/30/2015 Brazalian farmers have increased exports
3/31/2015 Closing price as of 31st March 2015
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