London cocoa sees steep losses as EU delays anti-deforestation law

Published 2024년 10월 3일

Tridge summary

London cocoa prices have dropped following the European Commission's decision to delay an anti-deforestation law, which was expected to come into effect on December 30. The law could have led to the decertification of cocoa, reducing availability. The delay has allowed certified cocoa stocks in Europe to be used, easing concerns. However, the market remains under pressure due to falling global stocks and weak chocolate demand. A surge in prices in New York is partly due to concerns over tight supplies and challenges for farmers. The situation emphasizes the need for policies that balance the economic and environmental interests of cocoa-producing and consuming countries.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

London cocoa prices fell sharply on Wednesday after the European Commission announced it was postponing the implementation of an anti-deforestation law. The legislation, originally scheduled to come into force on December 30, aims to curb deforestation in countries that export products, including cocoa, to the European Union. The delay will allow certified cocoa stocks stored in Europe to be used to fulfill ongoing contracts, easing concerns that the new law could trigger a decertification of cocoa and limit available supplies. London December cocoa (CAZ24) fell 148 points, down -2.90%, while New York ICE cocoa closed up 25 points (+0.36%). This divergence between the two major markets reflects investor response to the delay of the law and the outlook for stocks and demand. The outlook for cocoa stocks has also been a critical factor for prices. Cocoa stocks monitored by ICE at U.S. ports fell to 2,068,871 bags, hitting a 15-year low. This 15-month trend of declining stocks has ...

Source: Mercado Do Cacau