On Sept. 21 cocoa futures settled at $3,595 per MT for the Dec-23 NY contract, up $25 from Sep. 20’s close. The contract for the past two sessions has traded below the 20-day moving average. On Sep. 21, the contract found support near $3,542, $3,509, and $3,483, with resistance around $3,618 (20-day average) and $3,780. RSI is neutral at 59.6 percent, MACD and the stochastic are both bearish. 

Dec-23 London cocoa closed £15 higher than the day prior at £3,001 per MT on Sep. 21. RSI is bearish at 66.6 percent; MACD and the stochastic are bearish, as well. 

Cocoa supplies held in U.S. ports fell gradually within the last three months. Concerns over global cocoa production have been a primary driver in price hikes in 2022/23. The outlook for the 2023/24 season may be similar if weather conditions like rainfall continue to be unfavorable. The challenge of supply of key inputs is likely to persist, leading to smaller crops from large producers like Ivory Coast, Ghana, Nigeria, and Cameroon. 

The full version of this commentary appeared on our IQ platform Sep. 21, 2023. Further information, statistics, and pricing for the cocoa market are available to IQ subscribers. Learn more about becoming a subscriber.

Source: 123rf.com
Posted by: Information Services
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