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Positive Demand Tone Drives Cocoa Futures Up

Posted 06/19/2019 10:09AM CT | Eric Scoles

September ’19 cocoa futures start the day moving upwards in price off a positive boost in global demand outlook. With the euro zone making up more than one third of all global cocoa processing, 2% daily gains in German, French, and Italian stocks should provide the bulls with demand-based confidence. Adding to that positive note is signs of some progress in U.S./China trade negotiations, or at the very least decreasing tension between the two. With demand having been the most significant factor in cocoa futures prices lately, there can be volatility expected with each headline coming out on trade talks or euro economy. The daily chart shows the trend momentum being up with fundamentals supporting prices, so any pull backs could be potential bullish opportunities.

Cocoa Sep ’19 Daily Chart

Cocoa Sep '19 Daily Chart

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Eric Scoles

Market Strategist
Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.
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