Cocoa futures rose as market concerns over a hot and dry start to the season reducing the size of West Africa’s mid-crop
The May 2016 cocoa contract, which is the most actively traded, settled up $2, or 0.06 percent, at $3,118 a ton at the close of trading on Friday.
For the week, cocoa futures have gained 1.83 percent on production and supply disruption concerns, this week’s Ivory Coast terror attack and a weaker US dollar after this week’s reduction in the projected pace of US interest rate increases.
The Vibiz Research Center’s analysts anticipate that cocoa futures will continue to trend higher due to continued concerns about production headwinds in cocoa-producing countries.
On ICE Futures New York, cocoa futures prices could test resistance at $3,170 a ton. If that is broken, the next target is $3,220 a ton. Support on any corrections lower is seen at $3,070 and $3,020 a ton.
Editor: Asido Situmorang
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