Tentatively higher from an earlier low of $2,497, Cocoa is up to $2,552 per metric tonne today, adding $55, or 2.2%, to yesterday's closing price of $2,497.
United States Producer Price Index is next today at 13:30 UTC.
At the same time, United States CFTC Gold speculative net positions released yesterday at 19:30 UTC with a figure of 82,300, while the previous figure was 64599.99999999999. United States CFTC Nasdaq 100 speculative net positions came out at -2,400. United States CFTC S&P 500 speculative net positions released yesterday at 19:30 UTC with a figure of -177,100, while the previous figure was -175,100.
Cocoa made an initial breakout above its 5 day Simple Moving Average at $2,529, a potential indicator of a newly emerging bullish phase. CME Cocoa broke through the $2,510.5 resistance and climbed above it $41.5; next resistance level is at $2,525.5. In contrast, Bollinger Band® analysis indicates that current price action is approaching the upper band at $2,601, thereby suggesting that the Cocoa future is becoming overvalued.
Overall, looking at the technical analysis landscape, it seems CME Cocoa likely to continue pointing upward in the short term.
A look at other Softs also shows upside as Cotton climbs 1.82% to trade around $86.83.
Meanwhile, Coffee closed at $165 (down 0.72%).
Moreover, macro data could boost sentiment further as United States Core Retail Sales is projected to outperform its last figure with 0.4%. It previously stood at 0.1%; data will be released tomorrow at 13:30 UTC.
Also worthy of note, tomorrow at 15:30 UTC data for United States Crude Oil Inventories will be released, with an expected decline to 1.36 million from the preceding figure of 3.92 million.
Also worthy of note, United States Producer Price Index is expected today at 13:30 UTC.
CME Cocoa hit a significant low of $2,211.5 around a month ago, but has since recovered 12.91%.