"The current moisture levels and the outlook for the coming 2021/22 Australian grain winter crop are looking good in most areas so far and may well continue to improve," Ole Houe, a director at brokerage IKON Commodities in Sydney, said.
"Although some of the rises in commodity prices has been driven by speculators, there is also a genuine increase in demand as the global economy reopens," said Catril.
The rise from $2,317 observed closely a set of retracements of the downtrend from $2,728 to $2,317. After breaking $2,474, cocoa is expected to test the next support at $2,414.
On the daily chart, the contract reapproached a strong resistance zone of 4,486 ringgit to 4,576 ringgit, formed by the 2008 high and a 161.8% projection level.
This fall looks like a pullback towards the March 15 high of 4,192 ringgit, around which, the contract is stabilizing, as suggested by the doji forming on Monday.