ICE ADV Volumes for January 2022, Strong Gains in Cocoa, Up 35%

Intercontinental Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (ICE) published the trading volumes for January 2022. The Average Daily Volume (ADV) of Brent crude oil is up 2% y/y. Additionally, total natural gas ADV is up 8% y/y.

Moreover, TTF gas ADV is up 14% y/y, and Power ADV is up 12% y/y.

Due to the tension between Russia and Ukraine there has been some volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in natural gas futures. Russia supplies natural gas to approximately 40% of the European countries. Recently, Russia's central bank intervened in the Ruble.

Cocoa ADV increased by +35%, and Environmentals ADV is up 17% y/y. Environmental contracts reached record trading volumes in 2021. The total amount of traded carbon allowance soared to 18 billion tons. Approximately 19 million contracts were traded in on ICE throughout 2021.

15.2 billion EU carbon allowances contributed the most weight to the annual volumes. California carbon allowances reached 2.4 billion and 346 million Regional Greenhouse Gas Initiative allowances.

A new index, the Global Carbon Futures Index contract (CO2) has recently been launched.

The newly added index 'will provide access to the global cost of emissions, via four of the world’s largest cap and trade programs, in one instrument'.

The Ivory Coast Cocoa Exports

The Omicron virus has increased the demand for chocolate in the US with retail sales rising over 5% a quarter. The US chocolate marker has been estimated to be worth $20 billion. The Ivory Coast is the largest cocoa producer in the world. Due to a dry season with no rain, the Ivory Coast reduced the amount of cocoa it is sending.

Data revealed Nigerian cocoa exports rose 43.5% in the first eight months of 2021. Due to restrictions imposed by the Nigerian government to contain covid19 exports were reduced.

The Output for the 'October 2021 to September 2022' season is estimated to reach 280,000 tons, which is under the 320,000 tons the Cocoa Association had estimated for Nigeria.

Cocoa March 2022 is currently the most active.