March ICE NY cocoa (CCH24) on Tuesday closed +71 (+1.72%), and Dec ICE London cocoa #7 (CAZ23) closed +38 (+1.08%).
Cocoa prices on Tuesday closed moderately higher, with Mar NY cocoa posting a contract high and nearest-futures (CCZ23) posting a 46-year high. Continuous rain has limited fieldwork and encouraged crop disease on West African farms, which provide most of the world's cocoa supply. It has also stoked concern that current cocoa production will be unable to replenish supplies to avoid a global deficit. Gains in London cocoa were limited due to the strength of the British pound. The pound on Tuesday (^GBPUSD) climbed to a 2-3/4 month high against the dollar, undercutting cocoa that is priced in sterling.
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