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Softs

Can Cocoa Futures Keep Pushing Higher?

Posted 04/10/2019 9:03AM CT | Eric Scoles

July ’19 cocoa futures recover from a correction yesterday and close with a slight rise in price for 13th straight day of gains. Prices corrected downward early Tuesday after pressure from long liquidation. Prices rallied back to a positive gain with optimistic Brexit sentiment and near-term demand looking strong from Europe. However, a Brexit solution remains elusive which only allows for brief optimism before uncertainty returns without any clear progress. The outlook for cocoa’s mid-crop is still unstable with dry soil conditions in the Ivory Coast and high winds threatening the trees ability to flower, but attention should be paid to demand fluctuations from Europe causing volatility. This morning sees cocoa trading in consolidation, and folks are wondering can cocoa futures keep pushing higher? The near term appears to be bullish until any notable supply or demand shifts, but caution is advised due to potential for a pull-back with futures being in overbought territory.

Cocoa July ’19 Daily Chart

Live Cattle Jun '19 Daily Chart

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Eric Scoles

Market Strategist
Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.
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