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Monday, June 26, 2006

Will Cocoa's Trading Range Continue?

Will Cocoa's trading range continue? Cocoa futures have been mired in an increasingly narrow trading range recently, as traders try to figure out the market's next move. The bear camp cites favorable weather for the 2006-07 crop, with some analysts predicting a production increase of over 100,000 tons from last year's harvest. Bulls will counter that even with a production increase, demand continues to overtake supply, with an estimated deficit of 90,000 tons this year. Recently, prices have started to hold above several key moving averages, giving momentum traders a bullish bias. Read More....