Cotton

As parts of the world re-opens and the global equity markets try to recover losses from the past few months, the “food” commodities are following the trend. Cocoa demand should grow as more locations find the new norm.
As cocoa futures continue to be range bound and ending some recent trading days nearly unchanged, traders will focus on the demand of soft.
Cocoa futures have some fundamental news this week that normally would be strong enough to move the contract.
The May cocoa futures contract uptick may be short-lived.
Cocoa futures have been weakened by demand and the global equity markets. As the US and European markets moved higher for back to back sessions for the first time since February, cocoa tried to bounce off a potential bottom in the May contract.
As we continue volatility in every market, cocoa continues to move lower. As the May contract tests lows put in at the end of 2019, demand for chocolate could take the front stage for cocoa futures.
May cocoa futures continue to move lower as fear grows that the coronavirus outbreak could continue to get worse. Until a vaccine is in place, which could be six weeks away, the threat of a growing number of cases will continue.
March cocoa futures hit a multiyear high last week as the market attempted to touch 3000. The supply side of the fundamental equation is bullish.
Concerns about the coronavirus have affected the equity and futures markets. Asian demand for Cocoa has come into play. If this virus affects exports in large grinding nations, Asia specifically, we can see prices continue to move lower.
Grinding data this week has cocoa futures testing highs from 2018. The March contract reached 2729 on Thursday. Asian demand increased and provided market support – leading to more speculative buying.