Is the cocoa market overbought?

One technical measure suggests the market is overbought — though that has been the case several times since January and cocoa still climbed higher. In mid-February, when cocoa was trading at about $5,600, Citigroup Inc. said prices could reach as high as $10,000 if the supply outlook deteriorates. That’s now becoming a bigger possibility.

What are cocoa prices based on?

Cocoa prices displayed in Trading Economics are based on over-the-counter (OTC) and contract for difference (CFD) financial instruments. Cocoa increased 5,100.97 USD/MT or 121.57% since the beginning of 2024, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity.

What's going on with cocoa prices in 2023/24?

Cocoa prices also have carryover support from last Friday when the ICCO estimated a 439,000 MT cocoa deficit for 2023/24, 17% higher than its February estimate of 374,000 MT and nearly six times larger than the 74,000 MT deficit in 2022/23.