September ICE NY cocoa (CCU26) on Tuesday closed up +111 (+2.23%), and July ICE London cocoa #7 (CAN26) closed up +104 (+2.80%).
Cocoa prices settled sharply higher on Tuesday and are modestly below last Thursday’s 5.5-month highs. Cocoa prices have rallied sharply over the past two weeks, rising by more than 20% and hitting 5.5-month highs last Thursday. Concerns about the upcoming West African cocoa crop pushed prices sharply higher. Heavy rains in the Ivory Coast and Ghana have flooded roads and cut off farmers’ access to farms and ports, threatening global supplies. Accumulated June rainfall through last Monday has already reached levels near the typical average for the entire month in both countries. Excessive moisture also increases the risk of brown rot disease and black pod disease on cocoa trees, reducing yields and jeopardizing the harvest.
