After closing the previous trading day at $2,789, the Cocoa future is up to $2,853 per metric tonne, which makes for a move of 2.29%/$64 today.
United States Initial Jobless Claims data will be released today at 13:30 UTC, with an expected decline to 195,000.
Uptick comes while some more positive signs for Cocoa are out as highly important Crude Oil Inventories data from United States beat analyst expectations of 457,000 with a reading of 1.17 million.
At the same time, United States ISM Manufacturing PMI (Feb) released yesterday at 15:00 UTC with a figure of 47.7, while the previous figure was 47.4. Fresh Cushing Crude Oil Inventories data from United States came out at 307,000.
Technical analysis trend indicators suggest that the Commodity Channel Index (CCI) indicator is above +100, meaning the market price is unusually high compared to the rolling average. According to momentum evaluation, the Relative Strength Index indicates the Cocoa future is currently 'overbought' which suggests new gains will be harder to obtain. Analysis based on the asset volatility indicates that Bollinger Band® analysis indicates that current price action is approaching the upper band at $2,900.41, thereby suggesting that Cocoa is becoming overvalued.
Overall, while CME Cocoa has been on an uptrend, technical indicators suggest that it has no obvious direction for the immediate future.
This rally in CME Cocoa's price coincides with other Softs as Sugar is up 2.54%. Having closed the previous session at $85.66, Cotton is up 0.48% today to currently trade at around $86.07.
While CME Cocoa is higher so far today, these Softs commodities are underperforming: after ending yesterday's session at $186.3, Coffee lost $2.35 and is trading around $183.95.
Furthermore, the market is looking at United States Initial Jobless Claims projected to come out at 195,000 — worse than previous data of 192,000; data will be released today at 13:30 UTC.
Also worthy of note, United States ISM Non-Manufacturing PMI (Feb) scheduled to come out tomorrow at 15:00 UTC.
CME Cocoa has fallen back around 2.24% over the past a day, from a notable high of $2,853.