March ICE NY cocoa (CCH26) on Friday closed down -123 (-2.33%), and December ICE London cocoa #7 (CAZ25) closed down -97 (-2.50%).
Cocoa prices settled sharply lower on Friday, with London cocoa falling to a 1.75-year low on the nearest-futures chart. Cocoa prices were under pressure on Friday on negative carryover from Wednesday, when European Union nations proposed delaying the EU's Deforestation Regulation by 1 year. The EU regulation, known as EUDR, aims to tackle deforestation in countries whose imports into the EU include key commodities such as soybeans and cocoa. The delay of the EUDR, which was expected in late December, eases supply concerns and will allow EU countries to continue importing agricultural products from regions in Africa, Indonesia, and South America where deforestation is occurring.
