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European Cocoa Demand Not Enough | RJO Futures

Posted 05/24/2017 3:36PM CTPeter Mooses

European demand has grown, but is it enough to fight off the large supply levels we have seen this year? After Wednesday’s trading session it looks like the answer is no. The chart is also telling us we have more downside – May’s lows may be tested. The Euro’s pullback hurts the demand rebound from that part of the world. The unrest in Ivory Coast continues to give the market volatility. Rebel and government chaos will provide bounces and support in the futures market for cocoa. A solution would cause cocoa prices to drop lower, mix that with growing production levels and 1775 could be back in the picture. At this time, a wait and see approach may be needed with all these uncertainties.

 

Jul ’17 Cocoa Daily Chart

Jul '17 Cocoa 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.