No new news is good news? There is a repeating pattern in cocoa futures prices – pullback, buy more, move higher. It appears that traders do not think this rally is over. Every time prices stall, or try to consolidate, prices move to the next level of support. The technical trade is still bullish, a continued close above the 9-day moving average plus a strong trend-line to follow higher. If the July contract can hold above 2860, look for 2900 + to be reached by next week. It appears that 2915 is that next level. The supply and demand side of the equation is still there, production levels continue to come in low, crops in West Africa are a continued concern. The New York ICE contract versus London Cocoa spread continues to widen. All these signs show that the top in cocoa futures has not been put in. One of the top performing markets in 2018 looks to be keeping its own pace and not done climbing yet.
Cocoa Jul ’18 Daily Chart