Cocoa futures best bet among softs

On January 11, 2017, in cocoa futures trading news report, by Infinity Trading
cocoa options

cocoa options

January 11th, 2017

Cocoa looks the best bet among soft commodities for price rises, veteran analyst Judith Ganes Chase said, warning of “somewhat bearish” dynamics in coffee, and cotton prices that are already “too attractive” for growers.

Ms Ganes Chase named cocoa futures – which touched $2,121 a tonne in New York in late December, the lowest for a spot contract since March 2013 – as her “favoured pick” among soft commodities “as a market that has room to climb”.

“The cocoa market remains at low levels relative to the rest of the softs complex and would seem to have fundamentals that are not quite as bearish as market action suggested,” she said.

While acknowledging firm expectations for cocoa output in Ivory Coast, the top producer, saying that “there is no anecdotal evidence to believe the crop will miss production targets”, Ms Ganes Chase flagged potential support to prices from demand.

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