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Cocoa

Weekly cocoa market review 11/30/2020.Support us by consulting our free daily magazines with color stock charts and weather maps on our commodity-market-review.com website. TECHNICAL ANALYSIS OF COCOA Last week, ICE U.S. cocoa futures closed higher at $2,766 a ton. Some manufacturers bought cocoa directly on the futures markets to avoid paying the LID, a $400 premium introduced by Ghana and Ivory Coast to ensure a decent income for producers. The result has been a decline in ICE stocks that fuels speculation. It should be recalled that according to forecasts, the next harvest will be in surplus, and that in early November, the Coffee and Cocoa Council announced that it was having trouble selling 500K tons of cocoa from its intermediate harvest. For the 2020/21 season, the arrivals in Ivorian ports are 646K tons as of November 22, against 518K tons at the same period the previous season. Cocoa stocks are down to 3111 thousand 60 kg bags. The dry period in West Africa has begun and runs from mid-November to March. Producers hope that the Harmattan will not come too early this year. It is a dusty wind coming from the northeast of the Sahara that blows during the dry season. Harmattan can have a negative impact on crops. The wind would already be present in the northern part of the country, which explains why rainfall was already more concentrated in the coastal areas. The moisture in the soil should allow for an abundant harvest until the end of January-February, according to producers. Internationally, the prospect of Janet Yellen, former FED president, serving as secretary of the treasury in Joe Biden's future administration, and the hope of a vaccine is fuelling markets. Many countries are preparing vaccination campaigns. Investors are also anticipating a massive stimulus package, with increased government spending, which is weakening the dollar. The dollar is still low and in a downward trend, the DXY closes at 91.790. While waiting for a vaccine, the pandemic is not weakening. We have just passed 62 million cases worldwide, with more than 1.460 million deaths. The United States is the most affected country with more than 267,000 deaths and more than 13 million cases. WEATHER IN WEST AFRICA Ivory Coast and Ghana experienced above normal rainfall in October with an average rainfall of more than 150mm. They were more mixed in November. As can be seen on the 30 day maps below only the southern parts of these 2 countries received above normal rainfall and the northern parts were 50mm below normal. Cocoa trees are more affected by rainfall than any other climatic factor. The dry season started in Ivory Coast and Ghana and lasts from mid-November to March. Producers hope that the Harmattan will not come too early this year. It is a dusty wind from the northeast of the Sahara that blows during the dry season. Harmattan can have a negative impact on crops. The wind would already be present in the northern part of the country, which explains why rainfall was already more concentrated in the coastal areas. ICE US CERTIFIED COCOA STOCKS Cocoa stocks are down to 3111 from 3170 thousand 60 kg bags the previous week. ICE US and EU cocoa stocks rose above last season's stocks at the same time. THE DOLLAR The DXY index representing the Dollar against a range of foreign currencies closed last week down to 91.790, and the trend is still bearish. This is the first close below the 92 resistance level in almost 2 1/2 years. The presumed appointment of Janet Yellen as U.S. Treasury Secretary and Joe Biden's talk of a massive $3 trillion support package weighed on the Dollar. Forex traders are anticipating an increase in the money supply. In addition, U.S. unemployment figures, consumer confidence indexes and inflation figures disappointed last week. A low Dollar is generally favorable to the Dollar-denominated commodities markets.
ICEUS:CC1!
by Commodity-market-review
COCOA on a strong bullish impulse 🦐COCOA future daily chart after the previous impulse retraced until exactly the 0.786 fib level before starting strong bullish leg. The price never retraced yet and in the next days we can expect a retracement move until the 0.382 or the level above. According to Plancton's strategy (check our Academy), we can set a nice order ––––– Follow the Shrimp 🦐 Keep in mind. 🟣 Purple structure -> Monthly structure. 🔴 Red structure -> Weekly structure. 🔵 Blue structure -> Daily structure. 🟡 Yellow structure -> 4h structure. ⚫️ Black structure -> <4h structure. Here is the Plancton0618 technical analysis , please comment below if you have any question. The ENTRY in the market will be taken only if the condition of the Plancton0618 strategy will trigger.
ICEUS:CC1!
by InkyGrip
Weekly cocoa market review 11/23/2020.Support us by consulting our free daily magazines with color stock charts and weather maps on our commodity-market-review.com website. TECHNICAL ANALYSIS OF COCOA Last week, ICE U.S. cocoa futures closed sharply higher at $2,712 a ton. According to Bloomberg, Hershey is responsible for the sudden upward movement in cocoa prices by buying massively on the December futures contracts to avoid paying the LID and thus make big savings. More and more traders are using the cocoa market to avoid the LID, the $400 premium introduced by Ghana and Ivory Coast, which greatly annoys these two countries. Joseph Aidoo director of Cocobod accuses the industrialists of wanting to derail the LID. Under these conditions, the 2 countries threaten to suspend the sustainability programs, allowing companies to display ethical origins and sustainable cultivation of cocoa. The dry period in West Africa begins in mid-November, with some producers further north worried about an early arrival of the Harmattan, the dry and dusty wind coming from the northeast of the Sahara. Moisture in the soils should allow a bumper harvest until the end of January-February for producers further south. Hope for a vaccine is fuelling the markets, and Pfizer and Moderna have announced very encouraging results. Many countries, such as the United States, Germany, Spain, and others, are already preparing vaccination campaigns. The pandemic continues unabated, with more than 58 million cases worldwide and more than 1.382 million deaths. The United States is the most affected country with more than 256,000 deaths and more than 12 million cases. The hope of a vaccine, as well as the prospects of a massive stimulus package, is driving the markets. The dollar is still low and in a downward trend, the DXY closes at 92.392. WEATHER IN WEST AFRICA Ivory Coast and Ghana experienced above normal rainfall in October with an average of more than 150mm. The dry season usually starts in mid-November. Last week, about 25-50mm of rainfall fell mainly in the southern part of Ghana and Ivory Coast along the coastal areas. Producers hope that Harmattan will not come too early this year. It is a dusty wind from the northeastern Sahara that blows from December to March during the dry season. Harmattan can adversely affect crops. The wind would already be present in the northern part of the country, which explains why rainfall is increasingly concentrated in coastal areas. The rainfall forecast for next week is about the same as last week. ICE US CERTIFIED COCOA STOCKS Cocoa stocks are down to 3170 compared to 3254 thousand 60 kg bags the previous week. ICE US and EU cocoa stocks rose above last season's stocks at the same time. THE DOLLAR The DXY index representing the Dollar against a range of foreign currencies closed last week down to 92.392, and the trend is still bearish. Joe Biden, who will be invested on January 20, spoke of a $3 trillion support plan. Forex traders are anticipating an increase in the money supply. Treasury Secretary Steven Mnuchin has called on the FED to return unused funds from emergency aid programs for the coronavirus crisis. The FED has decided to do so, although it considers this decision premature. Last week, this did not cause much movement in the currency market, which remained relatively calm. A low dollar is generally favorable to the dollar-denominated commodity markets. COMMITMENTS OF TRADERS The weekly COT (Commitments of Traders) report of the Commodity Futures Trading Commission (CFTC) shows all the positions opened by all market participants. The COT report is published on Friday, and reflects the open positions on Tuesday of the same week. It shows the position of commercial traders (producers, commodity buyers, ...) but also non-commercial (speculators). The net positions of speculators on the futures markets are particularly interesting to observe. The speculative net position on the cocoa futures markets is up this week to 16.362 K instead of 7.604 K.
ICEUS:CC1!
by Commodity-market-review
Weekly cocoa market 11/16/2020.Support us by consulting our free daily magazines with color stock charts and weather maps on our commodity-market-review.com website. TECHNICAL ANALYSIS OF COCOA Last week, ICE U.S. cocoa futures closed higher at $2,388 a ton. Hopes for a vaccine are fuelling markets, Moderna announced very encouraging results on Monday. The pandemic is not weakening, we have just surpassed 54 million cases worldwide, with more than 1.320 million deaths. Faced with the second wave, Europe has been confined. The United States is the most affected country with more than 246,000 deaths and more than 11 million cases, and is also taking restrictive measures such as in New Jersey and Michigan. The 2020/21 season is off to a strong start with arrivals in Ivorian ports of 485K tons as of November 8, against 362K tons at the same period the previous season. The dry period in West Africa begins in mid-November and producers are confident. Moisture in the soils should allow for an abundant harvest until the end of January-February. Crushing reports for the third quarter were down 4.7% in Europe, down 4.02% in the USA, and down 10.1% in Asia. Reconfinement and the closure of bars and restaurants in Europe will undoubtedly weigh on the fourth quarter. Tensions in Ivory Coast following the presidential election have resulted in 85 deaths and 500 injured since August. President Ouattara was re-elected with more than 94% of the votes. The opposition does not recognize this election, deeming a third term unconstitutional, and to call for a transitional government. The government sent police units to surround the homes of opposition leaders, including that of Henri Konan Bédié, the former president. Guillaume Soro, in exile in France, called for an army uprising. Opposition spokesman Affi N'Guessan was arrested and investigated for "conspiracy against the authority of the state" and "acts of terrorism". The Constitutional Council officially validated the election. President Ouattara and Henri Bédié, former president and opposition leader, met for an exchange of about 40 minutes, both wanting to work for peace. Ouattara noted the handing over of a passport to Laurent Gbagbo, a further step toward reconciliation. WEATHER IN WEST AFRICA Ivory Coast and Ghana experienced above normal rainfall in October with an average of more than 150mm. Last week's rains were also above the five-year average in most of Ivory Coast's cocoa-producing regions, with about 25-50 mm of rainfall. Forecasts in Ivory Coast and Ghana are now normal for next week, with rainfall probabilities of 25 to 50 mm. It should also be noted that the dry season usually starts in mid-November, early December. ICE US CERTIFIED COCOA STOCKS Cocoa stocks are down to 3254 against 3361 thousand 60 kg bags the previous week. ICE US and EU cocoa stocks rose above last season's stocks at the same time. THE DOLLAR The DXY index representing the Dollar against a basket of foreign currencies closed last week up to 92.755, after a sharp decline in early November. The U.S. elections will continue to bring volatility to the currency market. Joe Biden will be sworn in on January 20, the Senate remains Republican for now, but a second round will be held on January 5 in Georgia. There is still a lot of uncertainty about the size and date of the famous plan to support the American economy. The Fed has announced that it will increase its "firepower" if necessary. Forex traders therefore anticipate an increase in the money supply. The pandemic is not weakening, Europe has reconfirmed itself in the face of the second wave, the United States is also taking new measures of restrictions in certain states. The hope of a vaccine, with the announcement of Pfizer, calms the markets and prevents for the moment the dollar from playing its role as a safe haven. Caution is still called for, however, as many questions about vaccines remain unanswered. The dollar has a strong influence on the price of raw materials, and it will be very difficult to predict its evolution in the coming months. A low dollar is generally favorable to the dollar-denominated raw materials market.
ICEUS:CC1!
by Commodity-market-review
Weekly cocoa market review 11/09/2020.Support us by consulting our free daily magazines with color stock charts and weather maps on our commodity-market-review.com website. ANALYSE TECHNIQUE DU CACAO Last week, ICE U.S. cocoa futures closed higher at $2,3333 per ton. The pandemic continues unabated, we've just surpassed 50 million cases worldwide, with more than 1.250 million deaths. Faced with the 2nd wave, Europe is confining itself or imposing curfews. The United States is the first country to exceed 100,000 new cases in one day. Joe Biden wants to set up a crisis unit. In Europe, many non-essential businesses are closed such as bars and restaurants. After a very good 2019/20 harvest, the 2020/21 season is off to a strong start with arrivals in Ivorian ports of 406K tons on November 1st, compared to 287K tons at the same period the previous season. Crushing reports for the third quarter were down 4.7% in Europe, down 4.02% in the USA, and down 10.1% in Asia. Reconfinement and the closure of bars and restaurants in Europe will undoubtedly weigh on the 4th quarter. Tensions in The Ivory Coast following the presidential election have resulted in about forty deaths since August. The opposition does not recognize this election and has announced the creation of a transitional government. In response, the government sent police units to surround the houses of opposition leaders, including that of Henri Konan Bédié, the former president. Guillaume Soro, in exile in France, called on the army to rise up. Opposition spokesman Affi N'Guessan was arrested and investigated for "conspiracy against the authority of the state" and "acts of terrorism". According to Reuters, bean arrivals at Ivorian ports fell last week due to the risk of violence. Producers are afraid to return to the farms, and prefer to stay at home. In the United States, Joe Biden will be sworn in on January 20, 2021, the Senate remains Republican for the moment, but there will be a second round in Georgia on January 5. If the Democrats win both seats, it would bring the distribution to 50-50 seats, and Vice President Kamala Harris could constitutionally break the tie. In the absence of a majority in the Senate, voting on a plan to support the U.S. economy would be made more difficult. Therefore, uncertainties remain as to the timing and amount of the plan. Last week the Fed reaffirmed its willingness to support the US economy and is ready to "increase its firepower" if necessary. The dollar fell sharply, with the DXY dropping from over 94 at the beginning of last week to close Friday at 92.236, a drop that benefited all dollar-denominated commodities. WEATHER IN WEST AFRICA Ivory Coast and Ghana experienced above normal rainfall in October with an average of more than 150mm. Last week's rains were also above the five-year average in most of Ivory Coast's cocoa-producing regions, with about 50 mm of rainfall. Forecasts in Ivory Coast and Ghana are now above normal for next week, with high probability of rainfall above 50 mm. With the unrest related to the Ivorian election, some producers have been reluctant to visit farms. A prolonged absence with heavy rains could impact the quality of the beans. It should also be noted that the dry season usually begins in mid-November, early December. ICE US CERTIFIED COCOA STOCKS Cocoa stocks are down to 3361 against 3456 thousand 60 kg bags last week. ICE US and EU cocoa stocks are above last season's stocks at the same period. THE DOLLAR The DXY index representing the Dollar against a basket of foreign currencies closed last week, down sharply at 92.236. The U.S. elections will continue to bring volatility to the currency market. Joe Biden will be sworn in January 20, the Senate remains Republican for now, but a second round will be needed in Georgia. Therefore, there is still a lot of uncertainty about the size and date of the famous plan to support the American economy. Last week's statements by the FED certainly weighed heavily on the dollar. The FED announced that it could increase "its firepower" if necessary. Forex traders are therefore anticipating an increase in the money supply. On Sunday, the United States experienced a record covid-19 for the 4th consecutive day, and even though the news was dominated by the elections, the pandemic could be remembered by investors if the US faces a 2nd wave similar to the one hitting Europe. A return of the dollar as a safe haven is not a possibility to be ignored. The dollar has a strong influence on the price of raw materials, and it will be very difficult to predict its evolution in the coming months. A low dollar is generally favorable to the dollar-denominated commodity markets. COMMITMENTS OF TRADERS The weekly COT (Commitments of Traders) report of the Commodity Futures Trading Commission (CFTC) shows all the positions opened by all market participants. The COT report is published on Friday, and reflects the open positions on Tuesday of the same week. It shows the position of commercial traders (producers, commodity buyers, ...) but also non-commercial (speculators). The net positions of speculators on the futures markets are particularly interesting to observe. The speculative net position on the cocoa futures markets is down sharply this week to 6.908 K instead of 20.449 K.
ICEUS:CC1!
by Commodity-market-review
Weekly cocoa market review 11/02/2020.Support us by consulting our free daily magazines with color stock charts and weather maps on our commodity-market-review.com website. TECHNICAL ANALYSIS OF COCOA Last week, ICE U.S. cocoa futures closed sharply lower at $2,294 per ton, losing more than $200 in one week. First, the worsening health situation with a sharp increase in covid-19 cases in the U.S. and Europe had a strong impact on markets last week. In front of the magnitude of the 2nd wave, Europe is reconfirming itself, this is the case of Ireland, Czech Republic, France, Germany, England, Portugal, Austria, and countries like Spain or Italy and others are taking more and more drastic measures, such as curfews, closing bars and restaurants, or limiting people in meetings. Then, after a very good harvest 2019/20, the season 2020/21, starts very strong with arrivals in Ivorian ports which are 317K tons as of October 25, against 208K tons at the same period the previous season. Grinding reports for the third quarter were down 4.7% in Europe, down 4.02% in the USA, and down 10.1% in Asia. And finally, last week the Coffee and Cocoa Council learned that Ivory Coast was having difficulty selling the remaining 500K tonnes of its 2020/21 intermediate crop. Indeed, to guarantee a fixed price to producers, the harvest is mainly sold in advance. The Ivorian presidential election held Saturday, October 31, had raised cocoa prices from 2330 to just over 2500 dollars per ton. Investors fearing violence. The toll is heavy with about thirty dead and a hundred injured since President Ouattara announced his candidacy for a third term. The election was held and Alassane Ouattara should be re-elected with an overwhelming majority. 23% of the polling stations could not open because of degradation or blockades, under the slogan of civil disobedience of the opposition. But the investors have decided, the situation is not serious enough to disrupt the supply of cocoa for the moment. The official results will be announced normally before Tuesday, and the reaction of the opposition and future events will be monitored. In the United States, the American election is scheduled for tomorrow, November 3, and market tensions are not excluded. Investors fear the possibility that Donald Trump will be declared a narrow loser and do not want to recognize the results, making the transition more complicated and delaying the vote on the long-awaited plan to support the U.S. economy. WEATHER IN WEST AFRICA Ivory Coast experienced above normal rainfall in September and October. Last week's rains were above the five-year average in most cocoa-producing areas of Ivory Coast, with 25-50 mm of rainfall, with very heavy rains in the south and southwest of the country. The Agboville region, for example, received up to 150mm of rainfall. The forecasts in Ivory Coast and Ghana are now in line with normal for the next 2 weeks. ICE US CERTIFIED COCOA STOCKS Cocoa stocks are down sharply to 3456 against 3500 thousand 60 kg bags last week. ICE US and EU cocoa stocks have risen above last season's stocks at the same time. THE DOLLAR The DXY index representing the Dollar against a basket of foreign currencies closed last week up to 93.882. The 2nd epidemic wave is scaring the market and the Dollar seems to be playing its role as a safe-haven currency. The chances of a quick agreement on a plan to support the U.S. economy are now nil. We will have to wait now for the election result, and this is beneficial to the Dollar in the short term. On the FED side, things will certainly remain frozen until the outcome of the American election. The FED has insisted on the need for a quick vote of a support plan, and they assure that the key rates will remain permanently low. A low dollar is generally favorable for dollar-denominated commodity markets. COMMITMENTS OF TRADERS The weekly COT (Commitments of Traders) report of the Commodity Futures Trading Commission (CFTC) shows all the positions opened by all market participants. The COT report is published on Friday, and reflects the open positions on Tuesday of the same week. It shows the position of commercial traders (producers, commodity buyers, ...) but also non-commercial (speculators). The net positions of speculators on the futures markets are particularly interesting to observe. The speculative net position on the cocoa futures markets is up this week to 20.449 K instead of 13.928 K.
ICEUS:CC1!
by Commodity-market-review
‘Tis the season to be Chocolatey!While you’re enjoying the summer sun and clear skies back in SA paradise… I’m afraid I’m not. I’m trying to keep warm sitting inside a local restaurant in Greece with a cup of hot chocolate while I search for my next trade. And surprise, surprise, cocoa popped up on my radar… Here are three reasons why I’m buying cocoa and where I expect it to head next. Reason #1: We are all buying We are literally one month away from celebrating yet another Christmas. And this is the top time of year where you, me and countless consumers will be buying chocolates. This increase in demand, will have a positive impact on the price of cocoa… Here’s a statement that Jack Scoville, analyst at Chicago’s Price Futures Group for “soft” commodities, has to say that coincides perfectly with the season: “The weekly charts for cocoa imply that a significant rally is possible over the next few weeks,” Reason #2: Thank the weather Did you know two-thirds or 60% of the world’s supply of cocoa beans come from West Africa each year. This includes the Ivory Coast and Ghana. You see, as cocoa is an agricultural commodity – the demand, supply and prices all have an impact based on the weather conditions and crop diseases that prevail. Jack Scoville mentioned, for the incoming produce, that the harvest was active this week in the world’s largest growing region of West Africa, with good volume and quality. It was also confirmed that the weather was also great for produce, due to the rain levels that West Africa received. Jack then added, “The weather in Ivory Coast has improved due to reports of frequent showers.” “The precipitation is a little less now so there are no real concerns about disease. Ideas are that the next crop will be very good. Both Ivory Coast and Ghana are doing what they can do boost cocoa prices.” Reason #3: A new surcharge to boost the cocoa prices This surcharge will have more of an impact than you think. Take the leading cocoa manufacturers including Hershey, Mars, Ferrero Group, Nestle etc… Them and other companies depend on supplies from the Ivory Coast and Ghana for the beans. This new premium will not only lead to a rise in price but also a further increase in cash flow, production, create sustainability and will allow farmers to boost wages for their workers. And so the chocolate manufacturers have supported the two nations decision to add the $400 per ton surcharge. Now let’s get into the charts… Looking at the above daily chart of the spot Cocoa Futures price, we can see that since March 2019 the price has been moving in a sideways range between $1,640 and $1,940 (Shaded area). Each time the price touched the $1,940 high, it then retraced back ended up making an even higher low. This has formed what’s known as an Ascending Triangle. This positive formation shows prices touching the same high while making higher, low prices, until there is a upside breakout. This took place last week (red shaded area), which confirmed there was a lot more upside to come. In fact, we can now expect the upside momentum to continue which will take the cocoa futures price to the next high - See the analysis above...
ICEUS:CC1!Long
by Timonrosso
COCOA: On a multi month Higher High. How to trade it.Cocoa has been trading on a multi-year Channel Up since May 2017 with the 1D chart trading near the overbought territory (RSI = 70.555, MACD = 51.220, Highs/Lows = 144.4643). If the Channel stays intact then the price should pull back towards the 1D MA200 for a Higher Low near 2,365. If however it breaks as it did in March 2018 then it can easily reach 2,940 which is the 2 year high. We have identified 2,700 as this break out point. You may trade accordingly with a tight SL. ** If you like our free content follow our profile (www.tradingview.com) to get more daily ideas. ** Comments and likes are greatly appreciated.
ICEUS:CC1!
by InvestingScope