Wow Cocoa Price Rebound Today

Cocoa futures prices on ICE Futures rebounded at the close of trade Friday on Wednesday (1/22). The drivers of the cocoa price increases triggered short-coveringahead of the announcement of the action of grinding cocoa in North America.

Traders perform short covering ahead of the release of fourth-quarter cocoa data milling North America, with most traders contacted by Reuters predicted to see a rise1 percent, despite widespread estimates range from 1 percent lower to 5 percent higher.

Other pressure came from previous official data in top producer Ivory Coast indicating the arrival of cocoa beans which is higher than estimates of exporters, traders said.

Grinding is a process by which commercial producers destroyed the roasted cocoa beans into cocoa butter, which eventually turned into chocolate. Tonnage is a measure of data in the process of factory and is seen as a token for the request.

At the end of the trading day above the price of cocoa futures contract March 2016which is observed most active contract closed with registered an increase. The commodity prices closed rose by 45 dollars or 1.60 percent at position 2855 dollars per tonne.

Forex Chair estimated that the price of cocoa futures to trade will be strengthened if the grinding results North America increases. Potential forstrengthening could also occur with the presence of obstacles still production in the country of the manufacturer.

Cocoa prices further to trade futures on the ICE Futures New York can potentially test the resistance level at 2900 dollar position. If the resistance level is successfully penetrated the next level is 2950 dollars. While the level of support that would be tested if there is a correction going on at 2800 2750 dollar and dollar.