Cocoa experienced a pullback yesterday, as traders booked profits after reports of bean processing declined at the largest grinder in Asia, but is rallying back strongly this morning on speculation data will show bean processing increased in North America just as chocolate makers need to buy futures. The National Confectioners Association will release so-called cocoa grind data on Thurs. Oct. 17; broker Marex Spectron Group is speculating it may have risen 6%-10%, exceeding the median forecast for 5.1%.
News out yesterday didn’t flush us out of the position, but we want to protect some profits here. Ahead of new fundamental data, and on a technical level, we are raising our stop to 2,740 to protect a small profit as we make fresh highs today from Friday’s level.