Cocoa Price Commodity Update

Cocoa Price Commodity Update

Cocoa prices entered a second month in 2016 is still under level 3.000 dollars per tonne. At the close of the year 2015, the cocoa into a commodity best

Cocoa futures prices on ICE Futures during the year 2015 has increased approximately 12% driven by cocoa supply worries. Cocoa price increase by 2015 was driven byworries over the impact of the El Nino weather phenomenon in the supply of West Africa, contrasted with weak commodity prices.

At the end of trading Friday early morning price of cocoa closed up of 61 dollars or 2.21 per cent at position 2827 dollars per tonne. Cocoa price increase stems fromconcerns over the deficit in the country's cocoa production of cocoa producers.

On Monday the cocoa market yesterday ICE cover commemorating President's Day.

On a weekly basis the price of cocoa is still recorded positive results of 1% monthly, but still negative – 1,1%. A weekly gain of cacao is driven by production disruptions by the Harmattan winds and also production deficit worries.

Cocoa is still bullish sentiment overshadow this weekend with wind attack due toproduction disruptions Harmattan, a dry winter wind that swept West Africa, where most of the world's cocoa is produced.

Winds of Harmattan pose a threat in the middle of the plant, which takes place from April, and smaller inventories, non-export grade seeds used in the milling industry of the country.

Commerzbank last week warned that expectations for a crop of Ghana to recover from the low level of 2015 the company has faded.

While the Government has reportedly warned the production at only 750,000 tons, almost above the level of a year ago and far from the 850,000-900,000 tons.

Agency VSA Capital also said that "Although the data are often not consistent in the cocoa sector", the frequency of severe weather warning "appears to be rising at this time".

We estimate, the price of cocoa on the next trade will strengthen with sentimentbullish production disruption by the Harmattan wind.

Cocoa prices further to trade futures on the ICE Futures New York can potentially test the Resistance level at 2880 dollar position. If the Resistance level is successfully penetrated the next level is 2930 dollars. While the level of Support that would be tested if there is a correction going on 2780 2730 dollar and dollar.