Key technical levels have been broken – 1990 and 1950. 1900 is the next support level that could be tested this week. Demand continues to be an issue in the cocoa market. Euro and Pound weakness also has pulled down cocoa prices. First quarter European grinding data will be released Wednesday, giving the market fresh news to trade off of. Ghana has raised its production estimates, weakening prices further. A close under the 60-day moving average has traders thinking 1900 is a realistic target lower. Traders still interested in taking the long-side of the market could look at 2200 calls in the July contract, market was just there a few weeks ago.


 July 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.