Cocoa Futures has reportedly declined in Monday’s day trades, adding to its current downtrend for the third time. The futures dropped on the news of West Africa’s cocoa production managed to record data beyond the expected estimates.
March deliveries of Cocoa plunged by 1.9% which ended at $2,003 per ton on the ICE Futures U.S. exchange. This has been the lowest conclusion since the 28th of September.
"The price decline today as well as the weak close last week is concerning for the bulls/longs in the market," Senior Market Strategist Peter Mooses told reports.
Mooses added that the present and major pressure on the market is West Africa’s production ideas. The said region has been labeled as the largest growing state in the world. Two West African countries namely Ivory Coast and Ghana had 10% declines in their total output if to compare with the previous data.
Freshly Harvested Cocoa
In other futures markets, arabica coffee for March declined down to 0.8% which finished trades at $1.285 per pound as the raw sugar for March delivery soared by 0.5% to finish at 15.06 cents a pound. Frozen concentrated orange juice for January loss 0.6% at $1.618 per pound as the March cotton declined by 1% to end at 72.58 cents for each pound.
ICE Index’s Cocoa Futures has indeed faced a bearish trend in its recent trades. It can be seen above that the futures did struggle to maintain a clear trend but a downward direction was the apparent inclination of the futures. It is so far trading at 2002.
The Coppock Curve of the futures has surpassed the -10 region. At -10.25, a sell would be recommended as the pair may have a hard time recovering soon.
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