Buying Chocolate: This Cocoa Rally Isnt Stopping

Buying Chocolate: This Cocoa Rally Isnt StoppingWhile the market is nervous about oil prices and worries about the fate of the dollar, a great trend is moving very close, on which less ambitious players are making money. Cocoa futures have brought a 40% yield on long positions this year alone, and the market does not intend to stop at this level.The Cocoa Wizard, which turns coffee into mochas and creates a huge range of goodies from chocolate to ice cream and cakes, has been growing in New York futures trading for a year now. In Tuesday's session on ICE Futures US, a tonne of cocoa for December delivery hit a new high of $3,697. In 12 months, the chocolate rally returned 56%.Usually, the price of cocoa beans rises sharply around the holidays, when sweet gifts become too popular, as well as the problem of bad weather affecting the harvest.Both factors are relevant now: after the pandemic, there has been a boom in chocolate consumption, and even regions that were not traditional buyers of cocoa have now become active consumers. For example, China imported more than $648 million worth of chocolate products in 2022 (12th place in the world ranking of importers).In the case of La Nina, the cooling of the Pacific Ocean and the resultant too-wet weather caused the rotting and disease of cocoa trees in the leading producing countries in West Africa.Ultimately, the huge premium for these raw materials will make everyone pay more for their favourite treats. Starbucks (NASDAQ: SBUX) has already raised menu prices by 5-7% year-over-year.Now the optimal pivot point is visible in the $3820/50 zone, so there is still upside potential. Technically, the cocoa market already looks overbought  on a short-term correction it may fall to $3300-3000, but the upward trend will remain relevant at least until the first quarter of next year. Draw your conclusions!Profits to yall!#ForexChief #Starbucks #nasdaq #Market #forexnews #stocks #worldnews #Cocoa