Six straight down days in the March cocoa contract have traders questioning where we will find support. Thursday’s session may have found a bottom around 1880, but will cocoa reverse going into the weekend. Ivory Coast’s production situation could help a recovery after this short-term downturn. Long liquidating took over the market this week, keeping the bulls on the sidelines temporarily. A weaker Euro and Pound have traders concerned about global demand again.
The concern of financial issues involving exporters haven’t helped the cocoa market either. Will Hershey build a plant in Ivory Coast? – What will this mean for grindings and prices? These questions will create volatility and large swings in the market for the remainder of the calendar year.
Cocoa Mar ’18 Daily Chart