Cocoa specifically has been greatly affected by lockdowns. Chocolate companies continue to report weaker data during the pandemic, as consumers have shifted their income towards necessities. 
This time of year, we typically see a boost in chocolate sales for the Valentine’s Day holiday, but this year is a little different.
The macro-sentiment of late has been slowly moving in a positive direction as more is learned about the vaccination process. More reopenings and fewer lockdowns will be supportive for the “foods” prices in commodities.
2021 could see a commodity bull market return— soybeans would be a commodity to watch. There are plenty of fundamental stories to keep the trade interesting, as well as solid technicals to guide investors as prices continue to climb.
Although we turned the calendar to a new year, most of our market stories have remained the same.
The grain complex has been extremely volatile over the last 4-6 months, with soybeans rallying over $4.50 and corn $1.60.
As we near the end of 2020, analysts start to dissect and predict certain possibilities in the new year.
The soybean market has lost momentum. The market hasn’t been able to trade and close above the key level of $12.00, even with all the bullish news of Chinese demand, tightening stocks, and drought conditions in Brazil.
As news broke that Europe would be easing its Covid-19 restrictions in certain areas, the hope that cocoa demand would rise has supported the market this week.
Traders have been concerned about demand for cocoa all year but as we enter “chocolate season” we see that even chocolate/candy purchases have been affected by Covid-19.