July ICE NY cocoa (CCN26) on Thursday closed up +292 (+7.06%), and July ICE London cocoa #7 (CAN26) closed up +189 (+6.09%).
Cocoa prices on Thursday extended this week's sharp rally, with NY cocoa posting a 3-month high and London cocoa posting a 3.5-month high. Cocoa prices surged on Thursday amid concerns that the formation of an El Niño weather pattern could lead to warmer, drier conditions in West Africa, potentially damaging cocoa production in the region. The US National Oceanic and Atmospheric Administration (NOAA) estimates a 61% probability that El Niño conditions will emerge between May and July and persist through the end of the year, with a one-in-four chance of a "Super El Niño."
