September ICE NY cocoa (CCU25) on Tuesday closed up +15 (+0.17%), and September ICE London cocoa #7 (CAU25) closed up +68 (+1.18%).
NY cocoa prices on Tuesday continued to see strength after Monday's +3% upward spike to a 2-month high. Cocoa prices on Monday rallied on concern about dry weather in West Africa that threatens the region's cocoa crops. There has been little to no precipitation over the past few weeks in the cocoa growing areas of Ivory Coast and Ghana, which could negatively impact the development of flowers and cherelles on cocoa plants. According to the European Centre for Medium-Range Weather Forecasts, rainfall in the Ivory Coast and Ghana this season remains below the 30-year average, and combined with high temperatures, risks hurting cocoa pod development for the main crop harvest that starts in October.
