Cocoa Futures (December)
The current cocoa trade could be broken up between short-term and long-term outlooks. Global equities have caused short-term trade to be volatile.
A push higher in the Asian and European equity market gave cocoa support Tuesday. The US stock market turned negative later in the session causing commodities to come off their highs.
In currencies, the British Pound continues to rally which should help cocoa futures’ price to move higher as well.
If global demand for cocoa can catch some consistent bullish news the December contract should head back above 2300. With resistance at 2280, some weather premium may be needed to help this longer-term move.
Key growing regions are dealing with black pod disease due to earlier weather conditions. If this development is paired with some positive global news, cocoa could rally into the last leg of Q3.
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