After setting a contract high last Thursday at $2,898, May-20 NY cocoa aimed for but fell short of that level this Thursday.

Given modest growth for grind, a good West African main crop to date, relatively neutral weather, and some global economic uncertainty, fundamentals can hardly be interpreted as fully bullish—certainly not so bullish as to warrant further gains.

Neither can technicals be seen as pointing to glaring upside potential, with RSI strongly bearish, MACD neutral, and the stochastic oscillator only nominally neutral and close to giving an overbought signal. The market, with key support from fund interest, seems inclined to move futures higher, however.

May-20 NY cocoa futures

Source: DTN
Posted by: Information Services
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