On Wednesday, Jul 28, nearby Sep-21 NY cocoa closed above retracement resistance near $2,400 and $2,410 after a seven-session rally. The contract briefly tested retracement resistance and the upper Bollinger Band around $2,450 but settled instead below the mid-July high of $2,430.

The contract may find support near $2,395, below $2,370, and from $2,345 to $2,335. Additional resistance may be from $2,490 to $2,500 and around $2,550. Technical indicators remain broadly bullish.

The dollar index inched lower this week, closing below its 20-day moving average Tuesday and Wednesday for the first time since early June.

Sep-21 NY cocoa futures

Source: DTN, McKeany-Flavell