Softs Report - Monday, Dec. 14

COCOA
General Comments: New York and London closed sharply lower again last week. Importers are still looking for ways to source Cocoa without paying a premium demanded by Ivory Coast and Ghana. Both countries have instituted a living wage for producers there and are looking to tax exports to pay the increased wages. Buyers have been accused of using certified stocks from the exchange instead of buying from origin. However, it looks like the exchange buying has come to a halt for now. There are a lot of demand worries as the Coronavirus is making a comeback in the US. Europe is also seeing a return of the pandemic. The North American and European cocoa grinds were at least 4% lower than a year ago and the Asian cocoa grind was down 10% from last year.
Overnight News: Sporadic and light showers are forecast for West Africa. Temperatures will be near normal. Malaysia and Indonesia should see showers. Temperatures should average above normal. Brazil will get mostly dry conditions and near to above normal temperatures. ICE certified stocks are lower today at 2.966 million bags. ICE said that 1 contract was tendered against December Cocoa and that total deliveries for the month are now 1,250 contracts.
Chart Trends: Trends in New York are mixed to down with no objectives. Support is at 2580, 2520, and 2450 March, with resistance at 2630, 2650, and 2670 March. Trends in London are mixed. Support is at 1760, 1730, and 1700 March, with resistance at 1790, 1800, and 1830 March.

1 2 3
View single page >> |

Disclaimer: A Subsidiary of Price Holdings, Inc. – a Diversified Financial Services Firm. Member NIBA, NFA Past results are not necessarily indicative of future results. Investing in ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.