Cocoa Grinding Data and Trading Technicals

October 15, 2020 11:00 AM
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Cocoa Futures Update

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Cocoa futures prices are feeling pressure from multiple sources. Grinding data is released this week – most traders are anticipating levels lower than last year at this time. Demand is a continued issue for cocoa as we move closer to the holiday season. European markets have also shown a weaker currency and equity trade – adding to the global pressure this commodity faces. 


Technically, the December cocoa chart looks bearish but also oversold. Look for support to hold at these current levels. The market should be strong enough to hold above 2335 even after all the grinding data is released this week. Look for opportunities at these levels; positive earnings reports or weaker production data can send prices back above 2500. As we get closer to the US election and year-end, look for continued volatility across the board.
 

December Cocoa Daily Chart

December Cocoa Chart
Source: Tradingview

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. Peter utilizes market analysis and trends to help clients achieve a balance between risk and return, while always keeping their investment objectives top of mind. Follow Peter on Twitter @PMoosesRJO