ICE Cocoa Jumps Amid Deficit Concerns

Cocoa futures rose on Friday on the back of a large deficit seen in the current 2015/16 season and an uncertain outlook for 2016/17.

Dealers said they were keeping a close watch on prospects of the upcoming 2016/17 main crop in West Africa with some concerns that dry weather could hurt pod setting and survival rates

The most-active December contract on the ICE Futures U.S. exchange was up $20, or 0.65 percent, to settle at $3,079 a tonne.

Analysts expect cocoa futures to firm in the coming session on expectations of a production deficit and a weaker U.S. dollar. On the ICE Futures U.S. exchange, cocoa is likely to break a resistance level at $3,130 a tonne. A break above the resistance level could lead to a rise to $3,180 a tonne. Support levels are at $3,030 and $2,980 a tonne.

Source: vibiznews.com (djk)