As it appears the U.S. will extend their debt limit in the coming days markets are finding support. We’ve seen volatility in the global markets over the past week stemming from debt concerns, weakness in the Euro and split news about the progress in the battle against Covid. As more individuals get vaccinated against Covid, it appears numbers in cases, hospitalizations and deaths are headed in the right direction – but this depends where you are looking. There are still many parts of the world struggling to recover physically and economically after the past year and half. As we enter the fall and winter seasons and holiday season, we’ll see what the trajectory is of the virus.
The equity markets, both European and U.S. have provided strain on commodities. Cocoa has managed to stage a rally earlier this week, trying to hit a new high of 2800 – but we have seen a big pullback the past few sessions. The key for the bulls is if production will really be lower than anticipated. This key will guide the cocoa market to start Q4.