Current trading week has proved to be not very successful for cocoa market–prices have dropped to minimumbecause of better predictions about West Africa yield.This region is the largest cocoa beansproducer worldwide. Meteorologists predict the weather in coastal area of Cote d'Ivoire on September 17 to be characterized by rain.
Last week the situation in cocoa market was different – prices have broken the 10-month record. Investors were concerned about dry weather in the regions of cocoa production, and about its possible negative impact of prices and quality of the new crop.
On Tuesday cocoa market was within correctional phase. December future at New York exchange has dropped by 1.6 percent – to 2611 dollars per ton.
The chart below reflects the current state of affairs in the market of cocoa: it seems that in short-term strong uptrend may start within wave [iii] of (3). Such scenario may though be denied if the level of support 2529 is broken.
