- Cocoa futures dipped 2.4% today, hitting 21-month low on higher supplies in Ivory Coast.
- Potential slowdown in bean arrivals might limit further losses.
- Cocoa futures dipped 2.4% today, hitting 21-month low on higher supplies in Ivory Coast.
- Potential slowdown in bean arrivals might limit further losses.
Cocoa futures hit 21-month low today, further extending a strong downward trend that resumed in early November. The contract managed to recover around 1% above yesterday close after diving below the lower bound of a decreasing channel in the early trading (-2.4% in the most critical moment).
The main driver of the resumed pression are the continued upside surprises in cocoa supplies from Ivory Coast, with port arrivals exceeding 100,000 tons for a third straight week. This steady flow has brought cumulative deliveries close to last year’s levels, easing concerns after a weak start to the season in October.
Worth noting that despite the recent surge in arrivals, underlying crop conditions remain fragile. Field surveys suggest this year’s tree crop is only marginally better than last season’s, with the main harvest potentially slightly weaker due to earlier dry weather. This could signal slower port arrivals in the coming weeks and potential easing of the downward trend.
RSI has returned to the oversold territory, following the easing of selling pressure in mid-October. Source: xStation5
📈 US100 gains 2.1%
Omnicom and Interpublic Join Forces. Will the Merger Be Enough to Catch Up with Big Tech?
Has Alphabet just won the AI race?
Crypto news: Bitcoin stabilizes after the sell-off 📈December Fed rate cut odds rise
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
