Socionomics Alert: No Mood for Cocoa

Another sign of the broken stock market comes from cocoa demand with consumers foregoing small luxuries such as chocolate.

Contrary to "common sense" that says people listen to music and watch movies to change their mood, socionomic theory says they choose activities that reflect their mood. If the commodity analyst is right and chocolate is a good-mood food, the dip reflects mood plunging to levels unseen in nearly a century.
ZH: Cocoa Prices Hit Two Year Low As Chocolate Consumption Falters

Swiss chocolate maker Barry Callebaut reported last week a 14.3% decline in last quarter sales as volumes sold to retail clients were halved.

ICE Europe cocoa futures plunged into a bear market in early July with prices down 24% in 22 weeks. The plunge in prices started around the time the pandemic began (late January/early February).

...Carlos Mera, a commodity analyst at Rabobank, told Financial Times the plunge in prices reflected consumers slashing discretionary spending. "The main factor is people are not in a celebratory mood," he said, referring to the downturn in the global economy.

Some commodity analyst uses the bean as a barometer of the economy because chocolate sales are highly dependent on consumers. So the break lower in cocoa prices could suggest the global economy is not recovering in a "V" formation but rather an "L."