By IFCMarkets
Cocoa supplies in West Africa fell slightly
The state of Côte d’Ivoire is located in West Africa and is the world’s largest cocoa producer with a market share of 35%. Cocoa deliveries to the ports of Côte d’Ivoire in the agricultural season 2019/20 from October 1 to March 22 decreased by 1.2% compared to the same period of the previous season and amounted to 1,623 million tons. Let us note that since the beginning of February, cocoa has fallen in price by 13%, as chocolate producers were afraid of a reduction in demand for their products amid the coronavirus epidemic. Nestle, the world’s largest producer of confectionery products, announced that it will exclude from its purchases cocoa beans grown in protected forests in West Africa. Previously, the Western companies Ferrero, Lindt, Mondelez, Olam and Cargill committed themselves to the Cocoa and Forests initiative (CFI) program. Theoretically, this may contribute to the seizure of part of illegal cocoa beans from the world market.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Buy | |
| MACD | Sell | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Neutral |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 2300 |
| Stop loss | Below 2150 |
Market Analysis provided by IFCMarkets
