No News In Cocoa Futures Market Brings Volatility Heading Into Thanksgiving

Cocoa futures current channel looks negative and with lower volume
Cocoa Futures Market Brings Volatility
Continued move higher in the US equities have given a positive tone
Cocoa Futures Update

Cocoa Futures Update

No News In Cocoa Futures Market Brings Volatility 

 

As we head into Thanksgiving and the holiday schedule, cocoa has moved lower. After making new highs the market has turned volatile. The current channel looks negative and with lower volume we may see follow-through as trading picks back up Friday.

 

Fundamentals In Cocoa Market

Positive demand news is needed to move prices back above 2650. Now that traders have been moving out of the December contract and into March futures it appears some longs have exited. COT data Friday will provide more information.

Currencies have provided little support as they have remained quiet. The continued move higher in the US equities have given a positive tone to the global markets.

Cocoa Futures Volatility

Source: Tradingview

Looking Ahead In Cocoa Trade

Look for the technicals to help the market find support. If 2585 can hold, a move above 2625 should be next.

If you are interested in discussing the soft commodities further contact pmooses@rjofutures.com . 

About the Author

Peter Mooses is a commodity broker at RJO Futures. He enjoys the analytical aspects of futures trading and appreciates the economic impact that commodities have across all markets.