Cocoa Still Experiencing Volatile Price ActionPosted 05/18/2018 10:03AM CT |
Cocoa has been experiencing volatile price action as of late, falling more than 3% yesterday and trading below the 50-day moving average. This comes following global demand concerns as well as minimal support from the Euro and the British pound, which have been experiencing downward pressure from the surging U.S. dollar. Cocoa appears to have broken a longer term trend line, however, overnight news of added export demand from Ghana may provide support as well as fuel a minor corrective move. Global supply outlook has remained bullish although it will be important to continue to monitor demand as well as grinding data ahead of the conclusion of the season. Cocoa appears to be slightly overbought in the near-term with resistance at 2709 and 2806 respectively and support at 2574.
Cocoa Jul ’18 Daily Chart