Political instability and postponement of the EU environmental regulations put pressure on the cocoa market

By: Claudemir Zafalon The price of cocoa has been under pressure in recent sessions, influenced by global political instability and rumors of a drop in chocolate consumption. The situation has been aggravated by the continuous drop in certified stocks in ICE warehouses, which now total 2,104,985 bags. Amid this scenario of uncertainty, a Bloomberg article brought the news that the European Union (EU) is prepared to postpone by one year the implementation of its historic regulation to combat deforestation. The European Commission gave in to pressure from countries and industries that produce raw materials, proposing to extend the rules that aim to reduce the EU's contribution to global deforestation through its imports of commodities such as coffee, cocoa, soybeans and beef. The regulation, initially scheduled to come into force on December 30, will now need the approval of the European Parliament and the 27 member states to be postponed for 12 months. The rules require complex ...