
Cocoa demand appears to be on the rise. Inflation is a huge hurdle. As consumers shift where they put their funds, products like chocolate take a backseat to “necessity items.” Traders appeared to be selling ahead of the Fed announcement and that selling continued Thursday. Will this dip be the next opportunity? If traders want exposure, consider buying December call options. 2300 is support on the chart and this market could easily head back to 2500 with some positive demand news. If the Fed continues to raise rates, soft markets may rise. There is still a lot of unknowns, the coming months should be telling as we are heading into the second half of the year.
WebOE Daily Chart
