rounded corner
rounded corner
top border

Mooses in the Markets - Covid-19 Lockdowns, Lack of Demand plus Presidential Elections move Cocoa Futures Lower


Bookmark and Share

Looking at a December cocoa contract, traders see the gap formed earlier this week will that be filled? As we approach the weekend, Ivory Coasts Presidential election is set to take place. Many people are anticipating political unrest and potential boycotts. As this occurs and supply issues arise from port closure or disruptions, prices continue to move lower.

The eurocurrency remains weak as lockdowns take affect in certain regions. Relief doesnt appear close to an already demand dependent cocoa market. As new measures are put into place in Europe, demand continues to weaken as we head into a key time of year for the cocoa market. Typically, data from corporations show a boost in demand over he next few months, not during a pandemic though.

The U.S. Presidential election has the global markets on edge, waiting for the results next week will be sure to add movement commodities. Fundamentals will vary from day to day over the next week, but technical levels may hold, look at option strategies to gain limited exposure to the market during an uncertain time.

December Daily Chart

***If you are interested in discussing the soft markets or any of the futures, email me at pmooses@rjofutures.com to schedule a free consultation.***

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.



Recent articles from this author



About the author


Peter's interest in trading began during a college internship with Bunge North America on the floor of the Chicago Board of Trade, where he assisted commodities traders and performed market research and analysis. Upon earning a B.A. in economics from the University of Iowa, Peter served as an analyst, transaction manager and team lead in the Global Trust Divisions for LaSalle Bank and Bank of America, where he managed transaction activity in multi-million dollar client fixed income and asset-backed securities portfolios.

After years in the banking industry, it became apparent that Peter's real passion lies in futures trading. He joined RJO Futures because he enjoys the analytical aspects of futures trading and appreciates the economic impact that commodities have across all markets. Peter believes in utilizing market analysis and trends to help clients achieve balance between risk and return, while always keeping their investment objectives top of mind.

Peter strives to apply a combination of fundamental and technical analysis to each trade. He has been successful in achieving a balance between risk and return based on each client’s unique investment objectives.

Peter Mooses
pmooses@rjofutures.com
800-826-4124
Twitter: @PMoosesRJO

To open a free trading account with Peter, click here:

https://rraos.rjobrien.com/Account/Broker/E579DEEC-6F1E-E811-80DE-8CDCD418B4A8 (or copy and paste the link.)

 

 


Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on InsideFutures.com is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Barchart.com. Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. InsideFutures.com is not a broker, nor does it have an affiliation with any broker.


Copyright ©2005-2020 InsideFutures.com, a Barchart.com product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy