New York Cocoa Futures rebounded from a nearly two-week low as the market anticipated an imminent influx of index-related purchases and continued supply uncertainty. After hitting the lowest point since December 9 earlier on Monday, futures prices rose 2.7% for a while. As cocoa is included in the Bloomberg Commodity Index, Citigroup expects the index rebalancing to attract up to $2 billion in purchases in early January. Peak Trading Research estimates that this move could trigger the buying of about 31,190 contracts. Dave Whitcomb, founder of Peak Trading Research, pointed out that cocoa futures are one of the most oversold varieties in the agricultural market, so they are very prone to a rebound.

New York Cocoa Futures rebounded from a nearly two-week low as the market anticipated an imminent influx of index-related purchases and continued supply uncertainty. After hitting the lowest point since December 9 earlier on Monday, futures prices rose 2.7% for a while. As cocoa is included in the Bloomberg Commodity Index, Citigroup expects the index rebalancing to attract up to $2 billion in purchases in early January. Peak Trading Research estimates that this move could trigger the buying of about 31,190 contracts. Dave Whitcomb, founder of Peak Trading Research, pointed out that cocoa futures are one of the most oversold varieties in the agricultural market, so they are very prone to a rebound.