Cocoa To Average GBP2,300/tonne in 2010

The short-term outlook for front-month (July) cocoa is positive from both a technical and fundamental standpoint. Following a bounce off support around GBP2,420/tonne, daily momentum indicators such as the slow stochastics are turning up from oversold territory, which is a bullish sign. Meanwhile, underlying supply and demand dynamics should remain supportive over the coming weeks as European cocoa grinders gear up for the northern hemisphere winter. Taken together, these factors suggest that the recent high of GBP2,608/tonne could be retested in the coming weeks.

To read the full article, please choose one of the following options: