Cocoa Breakout Off Inflation Slowdown

The cocoa market, along with many of the softs, is gaining some steam as inflation levels seem to be turning around. The September contract broke its downtrend going back to April of this year and pushed through the 50-day moving average. As inflation looks to be cooling, Cocoa could look to extend gains and test some resistance near the 2464 level, where there will likely be some congestion, and the 50-day moving average which was previous resistance will now act as a strong support level.