Fundamentally, cocoa has been one of the hardest hit commodities of late. Adding and removing shutdowns have created volatility in cocoa, and the recent pullback in May cocoa can create opportunities for traders: there’s clear support on the chart and a reversal may be forming.
The macro-sentiment of late has been slowly moving in a positive direction as more is learned about the vaccination process. More reopenings and fewer lockdowns will be supportive for the “foods” prices in commodities.
2021 could see a commodity bull market return— soybeans would be a commodity to watch. There are plenty of fundamental stories to keep the trade interesting, as well as solid technicals to guide investors as prices continue to climb.