Cocoa futures (COCOA) traded on ICE are up over 2% today, following a sharp sell-off that pushed prices down to around $7,100, triggering technical support. However, if the upward momentum fails to hold and the price falls back below the 50-day EMA near $7,200, we could see a move towards $6,500 per ton.
Recent COT data suggests that large speculators are increasing short positions, while Commercial players are only slightly reducing theirs. Comments from major companies, including Mondelez, indicate that the upcoming harvest season may bring a potentially significant improvement in the supply-demand balance.
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Source: xStation5
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