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June 05, 2023
After closing the previous trading day at $3,026, Cocoa is up to $3,060 per metric tonne, which makes for a move of 1.12%/$34 today.
CME Cocoa is currently trading at $3,060 following the release of ISM Non-Manufacturing PMI (May) data from the United States.
At the same time, United States ISM Non-Manufacturing PMI (May) came out at 50.3, while a consensus of analysts was expecting 51.8. United States Services PMI released today at 13:45 UTC with a figure of 54.9, while the previous figure was 53.6. Factory Orders in United States fell short of market expectations (1.1%) with a reading of 0.4%, continuing the decline from the previous figure of 0.6%.
Technical analysis trend indicators suggest that investors are seeking long positions as Cocoa price action surged above +100 — a key CCI threshold indicating an imminent bullish trend. Analysis based on the asset volatility indicates that CME Cocoa's upper Bollinger Band® is at $3,063.7, this is a slight indication of a slowdown.
Notwithstanding Cocoa's appreciation in recent days, the technical outlook suggests its bullish run is now fading.
Rallies can also be seen in other Softs, Coffee rises 1.3% to trade around $182.65.
Meanwhile, Cotton closed at $84.69 (down 1.58%). Sugar is down to $24.42, losing 9 cents, after closing at $24.51 in the preceding trading session.
Furthermore, the market is looking at United States EIA Short-Term Energy Outlook scheduled to come out tomorrow at 16:00 UTC.
The commodity has been trending positively for about a month. Cocoa hit a significant low of $2,211.5 around 8 months ago, but has since recovered 36.83%.
