Jul-23 NY cocoa moved lower from May 1 through May 3, breaking prior support around the 20-day moving average and retracement support to settle at $2,870. The Sep-23 contract closed at $2,881, testing the 20-day average May 3 but falling to hold above support near $2,885. For both contracts, RSI is mixed, while MACD and the stochastic are bearish.

Stocks have been rebuilding despite mixed cocoa arrival estimates; the outlook for global bean grind demand remains uncertain. Grind in Q1 2023 for the top three use regions, Europe, Asia, and N. America, was 707,069 MT, up 0.8 percent YOY. For Q4 2022 through Q1 2023, the first half of the 2022/23 market year, grind was down 0.8 percent YOY.

Most-active Jul-23 London cocoa fell further at the start of May, breaking its 20-day moving average and support from £2,200 to £2,185 to settle May 3 at £2,179. RSI is neutral; MACD followed last week’s bearish crossover for the stochastic.

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Source: 123rf.com
Posted by: Information Services
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