The Cocoa future has been losing ground for 3 days Today's positive session could indicate a brief correction amid a broader downtrend, or, the start of a potential reversal. After closing the previous trading day at $2,492, the Cocoa future is up to $2,502 per metric tonne, which makes for a move of 0.4%/$10 today.
United States Initial Jobless Claims data will be released today at 13:30 UTC, with an expected decline to 230,000.
On the flip side, United States Crude Oil Inventories released earlier showed a marked improvement to -5.19 million from the preceding data of -12.58 million, but fell short of the -3.31 million figure forecast by a consensus of market analysts.
Meanwhile, United States Cushing Crude Oil Inventories came out at -373,000, while a consensus of analysts was expecting -841,000. United States Unit Labor Costs (QoQ) (Q3) released yesterday at 13:30 UTC with a figure of 2.4, while the previous figure was 3.5.
Japanese candlestick formations show 'Bullish Harami' is a candlestick chart indicator used for detecting reversals in an existing bear trend. It is generally indicated by a small price increase that's contained within a broader downward price movement and is commonly associated with a bearish trend coming to an end.
This rally in Cocoa's price coincides with other Softs as Cotton gained 1.65% and is now trading at $83.18. Sugar is up 0.72% to $19.62.
Furthermore, the market is looking at United States Initial Jobless Claims expected to decline to 230,000 while its preceding data was 225,000, data will be available today at 13:30 UTC.
Elsewhere, United States Producer Price Index figure is projected at 0.2%. It previously stood at 0.2%; data will be released tomorrow at 13:30 UTC.
Having set a significant high of $2,821 2 months ago, CME Cocoa is trading 12.68% lower.