In a March 8 Barchart article, I wrote, “The price action in the cocoa futures market remains bullish on March 8. Buying cocoa on price corrections could be optimal as it joins the other soft commodities in the current environment of higher lows and higher highs on routes to multi-year peaks.” On March 8, nearby May cocoa futures were at the $2,732 per ton level. In the Q1 2023 soft commodities recap on Barchart, I wrote, “A move above $3,054 would end the pattern of lower highs from 2011, but it also continues the pattern of higher lows from June 2017.” May futures closed Q1 at $2,933 per ton and were at $2,991 on April 17 after probing above the $3,000 level.
As the May ICE cocoa futures contract rolled to July, the price broke out to the upside, rising to a seven-year high. The iPath Cocoa Subindex TR SM Index ETN product (NIB) tracks the price of ICE cocoa futures.
