FX.co ★ Cocoa Futures Sink to Near 1-Month Low

Cocoa futures have experienced a significant decline of over 4%, dipping towards $5,800 per tonne, a threshold last observed in mid-October. This drop is bolstered by promising supply forecasts and positive sentiment regarding a potential postponement of the European Union's deforestation regulations. A draft EU negotiating document has revealed that EU member states are considering pushing back the enforcement of the anti-deforestation law by an additional year, as they are set to discuss amendments to this legislation before its anticipated implementation next month. Concurrently, traders have noted an increase in cocoa deliveries from the leading producer, Ivory Coast, following a sluggish onset to the season. Furthermore, local agriculturalists reported that the recent combination of light rains and warmth in the nation's cocoa-producing areas forecasts a favorable scenario for the October-to-March harvesting period.