Cocoa’s main stories have been on repeat this year – supply/demand, global uncertainty, and grinding data, have created volatility in the futures. This recent sell-off, mainly from the lack of demand, Asian demand, due to the global trade tensions have finally caused cocoa to reach oversold levels. A recovery should be on the way. Global equities have comeback slightly, currencies have given softs a little push higher as well. Grinding data is coming in mixed. If resistance levels can be broken, 2280 – look for a move above 2300. The recent equity trade in the U.S. markets, as well as overseas could turn any market around as we saw over the past few weeks. Technically, look at moving averages for guidance in the short-term.

Cocoa Dec ’19 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.