March cocoa futures have rallied this past trading week as we leave 2019 and enter 2020. After the new year, the contract continued the move higher back towards 2550. The market has been supported by the recent positive global sentiment. Equities continue to make all-time highs which is carrying over to most commodities.
Cocoa is also finding a positive tone in the near-term demand of the soft. With the Euro and Pound moving higher, cocoa has followed. The Pound has climbed since the UK election. If demand can continue to grow out of Europe, even in the short-term, prices should be able to test 2600 by next month’s contract roll.