Cocoa Futures has been reported to have fallen for a second time in a row recently as the market remains in a range-bound performance after a stable period of declines.
For the September deliveries, Cocoa has seen a decline of 0.8% in which has closed at $2,002 per ton on the ICE Futures Index. According to reports, the market for cocoa has been plunging deeply. Oddly enough, last year’s crops were performing beyond the expected estimations in which have pushed the cocoa market in to a surplus from a shortage.
"With futures down over 40% from the 2016 peaks, it is understandable that the market seems to be taking a pause, as the lull of the summer months passes by," Cocoanect told reports. The firm added that shortened farmer revenue in Ivory Coast and Ghana in which are deemed to be the world's two major cocoa harvesters, has faced a substantial degenerations in compost trades, which could authorize the 2017/2018 harvest defenseless from the potential weather dangers.
Conversely though, the institute mentioned that despite the harvest downfalls and the rise of consumption growth due to the low valued prices for cocoa purchasers, a surplus is still likely and it has been heavily anticipated from the current year to the upcoming one.
In other futures market news, the raw sugar for the October deliveries declined by 1% to 13.64 per pound whereas the Arabica Coffee futures for the month of September was seen falling at a value of 0.1% in which was seen at a close of $1.4265 per pound. Frozen Concentrated Orange Juice for the September delivery was down by 0.1% as well in which was seen closing at $1.3345 per pound and lastly, the cotton futures steadied at 71.11 cents a pound.
Current Trading Performance
At the time of writing, Cocoa futures have fallen deep towards the 1965 region. It generally declined by 2.0% to 40 points. The Futures was dominated by bears since Tuesday and is likely to face more declines in the coming trades.
As for its Relative Strength Index, Cocoa has been trading around the 40’s region lately. It has not touched this region since last month and possibly, it still can fall. Currently, it is placed at 45.28.
Lastly, the Coppock Curve seemed to have mirrored the same performance despite still being on the positive region. It is currently at 6.55 and a hold on buy would be much preferred.
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