Cocoa futures are up for the month with possibly more gains to follow if veteran soft commodities analyst Judith Ganes-Chase’s assessment is correct. Cocoa futures are up 11 points today currently trading at $3,112 per ton at the New York Intercontinental Exchange.
Ms. Ganes-Chase has uncovered a skew between the British Pound and the Sterling denominated currency after the Brexit two weeks ago, and that is since the collapse of the Pound, Sterling denominated cocoa futures have prospered. Cocoa futures have gained 15% since the Brexit vote two weeks ago.
“The collapse in (the British Pound) is not the only reason for investors to buy cocoa,” said Judith Ganes-Chase, founder & president of J.Ganes Consulting, LLC in New York City, sharing her fundamental assessment of the cocoa futures market. Ganes added referring to the delays in deliveries of cocoa beans to Ivory Coast ports (the top cocoa producing country), “Casting the currency aside, worries over slowing arrivals remain the fundamental talking point.”
Cocoa futures trend is at a crossroad in consolidation for the past four months. Cocoa futures can trend up on a sustained rally over $3,150, or resume lower on a breakout below $2,950 – so let the market tell you what it wants to do…
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