December ICE NY cocoa (CCZ24) Thursday closed up +523 (+6.41%), and December ICE London cocoa #7 (CAZ24) closed up +512 (+7.87%).
Cocoa prices Thursday rallied sharply, with NY cocoa posting a 7-week high and London cocoa posting a 4-month high. Supply concerns sparked Thursday's rally after the European Parliament voted to change its deforestation regulations. If the EU cannot agree on changes to the rules before next month's deadline, the EU Deforestation Regulation will be implemented, which could curb supplies of commodities, including cocoa, from countries where deforestation occurs. The EU's Deforestation Regulation measure, known as EUDR, says companies must ensure the products they bring into the EU weren't made in areas deforested or degraded after 2020.
