Seven-day rally takes cocoa futures to two-week high

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 [...]

Speculative funds liquidate half their cocoa positions

This past week’s CFTC report showed that funds had liquidated half of their remaining futures this past week, taking net positions to their lowest in nearly nine months. Abundant rains are improving the prospects for the upcoming West African main crops, and lower than [...]

Cocoa sees technical support at uptrend

Inflation-related volatility continues to impact commodity pricing, and cocoa is seeing recent price weakness on fund liquidation. Since their mid-May highs, cocoa futures have fallen nearly $200 per MT or nearly a tenth on position liquidation ahead of the July contract expiration. With futures [...]

Cocoa futures markets looking for direction?

After a four-week low Tuesday, Jul-21 NY cocoa consolidated later in the week below its 20-day moving average, closing the week straddling Fibonacci retracement support above $2,410. Jul-21 London cocoa closed Thursday at a four-week low but was likely to rebound slightly in an [...]

New York terminal squeeze escalates fight over LID

Commodity futures markets often exhibit what is known as carry structure or contango, which is the upward stairstep shape associated with the string of progressively later-dated futures contracts. Higher premiums are a function of the greater uncertainty that comes with time plus additional logistics, [...]

Will Ivory Coast political instability add support for cocoa futures?

As a group, international observers have not been shy about their concerns over Ivory Coast’s political stability ahead of the country’s presidential election. Ivory Coast saw civil wars in 2002 and 2011, and now the question is whether a third civil war could be triggered [...]

Ivory Coast Prime Minister’s passing causing concern for upcoming election

The passing of Prime Minister Amadou Gon Coulibaly at age 61 heightens the volatility and uncertainty surrounding Ivory Coast’s presidential election in October. Gon Coulibaly was the presumed successor of the current ruling party and President Alassane Outtara—once Ouattara announced that he wouldn’t be [...]

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