Softs

Cocoa Production Data Main Factor for Prices

Posted 06/07/2017 3:39PM CTPeter Mooses

The continued talk of a large production surplus controls the market. After a short-term rally higher, prices sold-off for four sessions. Estimates are coming in for processing. Demand is stagnate and a non-factor. A move lower may attract buyers back into the market, especially institutional and commercial traders. Technically support is at 1950 and 1910. The gain on May 30 has not been completely erased so we’ll see what the remainder of the week brings us. Consolidation at these levels could lead to a range bound trade between 1965 and 1905 if the fundamental outlook doesn’t change. Weather premium is something to watch. For now, the production surplus is the main story but may finally be priced in for the season.

 

Jul ’17 Cocoa Daily Chart

Jul '17 Cocoa Daily Chart

 

 

Peter Mooses

Follow Peter on Twitter @PMoosesRJO. Peter's interest in trading began during a college internship with Bunge North America on the floor of the Chicago Board of Trade, where he assisted commodities traders and performed market research and analysis. Upon earning a B.A. in economics from the University of Iowa, Peter served as an analyst, transaction manager and team lead in the Global Trust Divisions for LaSalle Bank and Bank of America, where he managed transaction activity in multi-million dollar client fixed income and asset-backed securities portfolios. After years in the banking industry, it became apparent that Peter's real passion lies in futures trading. He joined RJO Futures because he enjoys the analytical aspects of futures trading and appreciates the economic impact that commodities have across all markets. Peter believes in utilizing market analysis and trends to help clients achieve balance between risk and return, while always keeping their investment objectives top of mind.