Cocoa on Track for Another Negative WeekPosted 02/01/2019 8:27AM CT |
Cocoa prices have fallen for 3 trading sessions in a row and looks to start today over 100 points below Monday’s high and on track for a fifth consecutive negative week. While recent wet weather can begin to ease concerns with the upcoming west African mid-crop, cocoa’s demand outlook could improve if key outside markets have a positive turnaround. For the month of January, cocoa prices fell by 268 points for a loss of 10%. Cocoa’s turnaround coincided with a sell-off in the euro currency that fell from a new 2.5 week high well into negative territory late in the day. Fourth quarter euro zone GDP posted its lowest year over year increase since early 2015, which weighed on European equities as well. There were some positive vibes from U.S./China trade talks that could give a boost to Asian and North American demand prospects. Producers in the Ivory coast remain optimistic about their growing conditions with plantations in the east showing leaves that are green and pods on the trees. Resistance comes in at 2180 and 2200 with support at 2150 and 2140.
Cocoa Mar ’19 Daily Chart