Cocoa, what do the funds decide?
Thanks to a recovery in Crude Oil, that has influenced all the commodities, the price of cocoa has recovered something during the past week and closed the week at 2775 dollars/ton. The start of the past week really wasn’t convincing, prices ulteriorly felt to lowest level for a year, caused by the negative processors data for the 4th quarter 2014, published the previous week.
In the last weeks the funds diminished drastically their long positions in the cocoa, a bad sign for the market. During the last week of January they have diminished by ¼ their long positions, passing from 51' 000 to a little more than 39' 000 contracts. Technically the recovery of the last week represents an opportunity to sell, without however forgetting to cover the shoulders if the market would unexpectedly continue to climb.
More Commodity Analysis: swisscommodity.com
In the last weeks the funds diminished drastically their long positions in the cocoa, a bad sign for the market. During the last week of January they have diminished by ¼ their long positions, passing from 51' 000 to a little more than 39' 000 contracts. Technically the recovery of the last week represents an opportunity to sell, without however forgetting to cover the shoulders if the market would unexpectedly continue to climb.
More Commodity Analysis: swisscommodity.com
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