London cocoa prices posted the biggest intraday gain since August, with traders likely covering huge bearish positions after a briefer-than-expected delay to EU deforestation laws and concerns over Ivory Coast supplies.
Cocoa futures in London rose by as much as 8.4% to £4,550 a ton after the European Union on Tuesday proposed a six-month delay for enforcing its deforestation laws, instead of the prior one-year time frame. The laws, which would set traceability requirements on products including cocoa, could temporarily tighten supplies.