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