Time to Buy Cocoa? | RJO FuturesPosted 03/29/2017 3:13PM CT |
Chairman of the regulator Cocobod said Ghana has run out of funds to buy more cocoa. Their loan of nearly $1.8 billion is almost gone to get them through the season. This means that although they are the second largest producer of cocoa, they do not have the financing needed for the remainder of the production year. This comes at a time when the futures market tried to rally to 2200 but failed. Crop concerns came up: were pods damaged as they sat at ports waiting for buyers? Demand was coming back into the long-term picture. This news stopped the recent rally and has the short-term trade in question. On a chart, it looks like the market has a reason to be trading around 2200 and if fundamental news can turn around, 2600 is the next level of attraction technically for the July contract. Key levels had recently been met and broken, 2050, 2080, 2100…but now holding above 2080 is a must.