EL Nino

Cocoa remains caught between a heavy near-term supply backdrop and a tightening forward crop outlook. Technical traders are watching whether prices can reclaim 6,418 or remain vulnerable to a deeper slide toward the 2,981 to 2,753 band.

Natural gas prices enter a pivotal stretch with above-normal heat still supporting power burn across the central and eastern United States. Yet fading late-July temperature forecasts, storage concerns and El Niño-linked winter expectations continue to keep downside risks in focus.

Natural gas futures remain under pressure as stronger wind generation, elevated production and storage rebuilding weaken the bullish case. Winter demand expectations are also being challenged by increasingly confident El Niño forecasts that point to milder conditions across key northern demand regions.

Natural gas futures are holding near key technical support as traders await the latest EIA inventory reading. Strong production, soft consumption and elevated inventories continue to favor sellers, though European LNG demand remains a potential bullish wildcard.