Commodity Market Roils, HSBC Shares Slip

Cocoa, Oil & Coffee: A Roller‑Coaster of Prices

Ever notice how the market can feel like a circus? One moment the price of cocoa is climbing, the next the same commodity is dropping. Let’s break down the latest juggle that’s been playing out on the trading floor.

1⃣ Cocoa’s Price Spike: A Sweet Surge

Supply Shortage & Weather Drama: West Africa, responsible for about two‑thirds of global cocoa, has been dealing with huge weather disruptions—think heavy rain, scorching droughts, and everything in between.
Quality Takes a Hit: These storms have smashed harvests and lowered cocoa quality, turning what used to be a chilling harvest into a “bust”.
Demand Holds Steady: Even with the turbulent supply, the appetite for cocoa hasn’t budged. Bizarre, right?
Price Effect: Each kilo of cocoa now costs roughly €3 more than last year. Forecast says the stormy price tag will stick around for a while.

2⃣ Barclay’s Turnaround: Big Moves, Big Gains

Barclay’s recent rally isn’t just luck—it’s a strategic pivot highlighted in their earnings report. Even though the company’s hit a £900 million non‑cash charge for restructuring, investors are more excited about the long‑term vision than short‑term dents.

3⃣ Crude Oil’s Slide: Demand Depression Takes the Lead

Demand Concerns: Oil’s slide is driven mainly by worries that global demand might not hold up, especially with the US Fed hinting at higher, longer‑standing rates.
Political Tension Amid Interest Rate Fears: Despite Middle Eastern instability (which historically had siphoned up prices), the risk of decreased demand has come to dominate.

4⃣ Coffee Falls: Good Weather = Bad Prices

Brazil’s Sunny Season: In Brazil, a hopeful climate has boosted expectations for coffee yields, sap. The buzz turns bearish, pulling prices down.
Red Sea Shipping Hurdles: Attacks on ships have deterred Vietnamese robusta buyers. The supply chain hiccup has forced buyers to look elsewhere.

5⃣ HSBC’s Sweat‑Sink: Profit Slump Carnival

HSBC’s stock plunged—its biggest drop since 2020—after the bank announced an 80% drop in quarterly profit.

Pre‑tax earnings fell from $5 billion in the previous year to $1 billion last quarter.
Analysts had expected a $34 billion total for 2023; the bank did nothing near that.
One‑off charges (think hyperinflation in Argentina) added to the negative vibes.