The Cocoa future is grinding lower from $2,337 to $2,307 per metric tonne, shedding $30 (1.28%) today.
United States's Consumer Confidence new data released of 102.5 below its previous figure.
Following a previous reading of 107.8, Consumer Confidence in United States released today at 14:00 UTC fell short of the 106.5 figure expected by analysts with an actual reading of 102.5.
Amid the market gloom, United States S&P/CS HPI Composite – 20 n.s.a. (YoY) (Aug) released today at 13:00 UTC with a figure of 13.1, while the previous figure was 16. United States Services PMI came out at 46.6, while a consensus of analysts was expecting 49.2.
Chart analysis suggests Cocoa could begin to recover as it approaches significant support, now $4 away from $2,303. Dipping below could be an indication that further losses are ahead. Trend-focused traders would be interested to note that Cocoa made an initial break below its 5 day Simple Moving Average at $2,316.8, a possible indication of a forthcoming negative trend. CME Cocoa formed a session range of $2,284 to $2,328 leaving buyers and sellers highly concentrated around an active Fibonacci support level of $2,311.75. Analysis based on the asset volatility indicates that Bollinger Bands® shows an indication of recovery: the lower band is at $2,278, a low enough level to, generally, suggest that the Cocoa future is trading below its fair value.
Overall, the technical outlook suggests the Cocoa future is likely to remain muted for the immediate future, with no clear-cut direction.
Taking a look at other Softs commodities, negative performances are evident as Coffee is down $6.1 from the beginning of the session and now trades around $184.3.
Though the Cocoa future has been dropping, other Softs have been performing better: having closed the previous session at $76.13, Cotton is up 3.4% today to currently trade at around $78.72.
Some optimism can drawn from the fact that United States Crude Oil Inventories is projected to outperform its last figure with 200,000, having previously been at -1.73 million. The figure will be published tomorrow at 14:30 UTC.
Furthermore, United States New Home Sales (Sep) is scheduled for tomorrow at 14:00 UTC.
CME Cocoa hit a significant low of $2,211.5 around 29 days ago, but has since recovered 5.67%.