December ICE NY cocoa (CCZ24) Monday closed down -161 (-2.28%), and December ICE London cocoa #7 (CAZ24) closed down -76 (-1.49%).
Cocoa prices Monday settled moderately lower, with NY cocoa holding just above last Friday's 4-1/2 month nearest-futures low. Cocoa prices have been under pressure since last Wednesday when the European Commission postponed an anti-deforestation law for one year. The legislation, previously scheduled to go into effect December 30, is aimed at curbing forest clearance in countries that send products, including cocoa, to the EU. The postponement of the law allows certified cocoa stockpiles held at European warehouses to be used to satisfy contracts, reducing concerns that the new law would lead to the decertification of the cocoa and limiting existing cocoa supplies.
