European Cocoa Demand Not Enough | RJO FuturesPosted 05/24/2017 3:36PM CT |
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