ICE cocoa futures (COCOA) are down around 3% today as the market once again focuses on improving near-term physical availability and elevated inventories. Pressure on prices is being reinforced by strong cocoa arrivals at ports in Côte d’Ivoire and ICE-monitored inventories remaining at relatively high levels. This is easing concerns about immediate supply shortages ahead of the main crop harvest.
-
Major processors are currently signaling sufficient cocoa availability in the global market, while chocolate manufacturers have rebuilt part of their inventories, reducing the urgency for spot purchases.
-
Today’s decline may also partly reflect profit-taking following the earlier price rebound and a reduction in long positions by funds.
-
Supply-side risks have not disappeared. The market continues to monitor crop diseases, excessive rainfall and plantation conditions across West Africa, particularly in Ghana and Côte d’Ivoire.
For now, investors appear to be placing greater emphasis on high inventories and the current availability of physical cocoa than on potential supply problems in the coming months. The contract has pulled back today toward the lower boundary of the ascending price channel. If the $5,700-$6,000 area fails to hold, this could trigger a bearish impulse toward $5,000 per tonne. The $6,050-$6,200 zone now represents an important resistance area.
Source: xStation5
Daily Summary: Bitcoin Excites Investors Despite the Fed's Hawkish Shift🏛️
What could halt the uptrend❓
BREAKING: US industrial production & manufacturing data lower than expected
Cocoa falls as African harvests rise and ICE inventories approach a two-year high
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.