The cocoa futures market has recently seen wide ranges with currency and demand concerns. Although cocoa price remains high at overbought levels, the currency trade and outside factors could change that. Technically, cocoa futures haves been overbought but have fought off this factor to continue to climb towards contract highs. Of late, the stronger dollar, lower euro and weaker pound has hurt demand out of Europe – this has pressured prices and added volatility. Global supply concerns of cocoa have still been able to be the main factor of prices being supported at these levels; but these levels have been trading in 100 point ranges giving traders the idea that this market can move either way at any time. Continue to monitor global demand, grinding data and see where the technicals lead traders over the next week.

Cocoa Jul ’18 Daily Chart

Cocoa Jul '18 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.