Cocoa, Demand, and the Direction of the Dollar | RJO Futures

February 2, 2017 3:10PM CST

Heading into the Friday trade - March cocoa closed lower after two positive sessions. The dollar tried to move higher and the Euro failed and traded lower for the second straight day. Is the “Trump rally" coming to an end? Will the pullback in the Dow continue to carry over to commodities? These questions have added to already volatile markets. Pressure in the currencies has weighed onto the commodities. The demand of cocoa continues to struggle. Export numbers are weak out of Ivory Coast. Technically, a continued close below the 9-day moving average is also negative. But, levels appear to be oversold and further out call options are still on the pricier end, so these indicators could be previewing a recovery. 2070 has held in the March contract so continue to monitor this area on a chart.

 

Mar '17 Cocoa Daily Chart

Source: WEB OE

Cocoa Daily Chart


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