Cocoa futures have extended their 2016 gains today amid Asian grinders reporting higher-than-expected volumes. Cocoa futures are down 22 points, however, currently trading at $3,189 per ton at New York’s Intercontinental Exchange.
Grinding – looked upon as a way to gauge consumer demand – came in at nearly 149 tons which was up nearly 3% in the first quarter compared to the same time last year, according to the Cocoa Association of Asia, and 1% better than expected. This news has caused cocoa futures to rally nearly 10% since earlier this month.
Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, shared his fundamental view of the cocoa futures market by stating, “The cocoa market is reportedly seeing an uptick in Asian grind, and disappointing arrivals in the Ivory Coast.” Brady adds, “Since January the pace is said to be down about 7% year on year. Just enough to be significant.”
The trend for cocoa futures is up with no top yet in sight. At this rate of strength, cocoa futures could easily test the past two years high’s by the end of Spring.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.
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