Cocoa Futeres Update Today Fall Down

The price of ICE Futures cocoa futures at the end of trading Friday dawn (07/07) closed down. The decline in cocoa prices is triggered by estimates of global cocoa production surplus.

Cocoa has struggled to move higher amid the estimated cocoa surplus, along with sluggish demand growth.

Last month, the International Cocoa Organization raised its forecast for the 2016-17 season, indicating a surplus of 382,000 tonnes, compared with an earlier forecast of 264,000 tonnes, as cocoa seed supplies swelled in Ivory Coast, the largest grower in the world. Some private research firms have forecast another big surplus for next season, traders said.

In a recent report, ICCO increased its forecast for global production by 2016/2017 by 140,000 tons to a record 4.69 million, up 18.1% from the previous season. The increase is predicted mostly from Ghana and Ivory Coast.

At the end of trading early this morning, the price of cocoa futures contract September 2017 which is the most active contract monitored closed with a decline. The price of the commodity closed slumped by 20 dollars or 1.03 percent at the position of 1927 dollars per ton.

Tonight will be released Data Nonfarm Payrolls June US indicated increased. If realized will strengthen the US dollar.

Analyst Vibiz Research Center estimates that cocoa futures prices for subsequent trades are potentially weak if a stronger dollar occurs. For future trading, cocoa futures prices on ICE Futures New York potentially will break the Support level at 1.880 dollars. If the support level is broken the next level is $ 1,830. While the level of resistance that will be penetrated if there is an increase is at 1.980 dollars and 2.030 dollars.