Cocoa futures have been one of the commodities has that been a good indicator of where people are at as far as getting back to “normal.” Chocolate companies have suffered as lockdowns and closures have slowed demand for cocoa. As “entertainment” activities are no longer part of everyone’s routine, goods like chocolate are not being sold at big venues (concerts, sporting events, shows) and people have moved their expenses from luxury purchases to necessities with all the unknowns in our current world.
Before this recent move lower, September cocoa had consolidated and been somewhat range bound as states and countries attempted to reopen. As cases of covid-19 start to climb in certain areas that have reopened, the markets are starting to move lower again, reflecting the current mindset of consumers. It appears this could be a longer-term trend in cocoa, possible 6 months to a year out.
Technically, the bottom appears to be around 2210, this will be tested in the coming weeks if no changes occur to the demand for cocoa.