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

Peter Mooses

Follow Peter on Twitter @PMoosesRJO. Peter's interest in trading began during a college internship with Bunge North America on the floor of the Chicago Board of Trade, where he assisted commodities traders and performed market research and analysis. Upon earning a B.A. in economics from the University of Iowa, Peter served as an analyst, transaction manager and team lead in the Global Trust Divisions for LaSalle Bank and Bank of America, where he managed transaction activity in multi-million dollar client fixed income and asset-backed securities portfolios. After years in the banking industry, it became apparent that Peter's real passion lies in futures trading. He joined RJO Futures because he enjoys the analytical aspects of futures trading and appreciates the economic impact that commodities have across all markets. Peter believes in utilizing market analysis and trends to help clients achieve balance between risk and return, while always keeping their investment objectives top of mind.