Cocoa moves lower on technicals and lack of demand | RJO Futures

April 12, 2017 8:19AM CDT

Key technical levels have been broken – 1990 and 1950. 1900 is the next support level that could be tested this week. Demand continues to be an issue in the cocoa market. Euro and Pound weakness also has pulled down cocoa prices. First quarter European grinding data will be released Wednesday, giving the market fresh news to trade off of. Ghana has raised its production estimates, weakening prices further. A close under the 60-day moving average has traders thinking 1900 is a realistic target lower. Traders still interested in taking the long-side of the market could look at 2200 calls in the July contract, market was just there a few weeks ago.

 

 July Cocoa Daily Chart


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