Softs

Cocoa and the Grinding Data

Posted 07/19/2017 3:37PM CTPeter Mooses

September cocoa traded higher during Wednesday’s session – finding resistance again around 1955. The NY futures contract has recovered since hitting 1801 on July 12. Cocoa has found a range between 1800 and 1950, giving technical traders some guidance when entering new positions. The recent trade below the 9- and 18-day moving averages wasn’t enough to keep the market down; grinding data has taken over the trade for the next few days. Asian data came in at 9.9% for the second quarter – coming in lower than estimates. North American Q2 data will be released Thursday. The NA data should have a big impact on prices in the short-term. Wednesday’s trade saw a high of 1953, but the market couldn’t hold and close above 1950. The recent downtrend in the dollar is also directing cocoa. Look for Thursday’s grinding data, the currency trade and any new demand news to be the near-term guidance for establishing future positions.

 

Sep ’17 Cocoa Daily Chart

Sep '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.