July ICE NY cocoa (CCN26) on Wednesday closed up +2 (+0.05%), and July ICE London cocoa #7 (CAN26) closed up +5 (+0.16%).
Cocoa prices climbed to 3-week highs on Wednesday and settled slightly higher. Cocoa markets are pricing in weather risks after an El Niño weather pattern was confirmed last week. An El Niño typically brings warmer, drier conditions to West Africa, reducing soil moisture, stressing cocoa trees, and lowering yields. Prices fell back from their best level on Wednesday as the dollar strengthened.