Traders started worrying about the next crop and the El Niño weather phenomenon, which tends to reduce cocoa yields in West Africa.

The ongoing El-Nino weather pattern is usually associated with good rains in South America but dry weather in Asia that could tighten supplies of the Robusta variety.

This also supports a narrowing of the Arabica-Robusta spread, which has dropped to an average of US¢36/lb in August compared to recent highs of around US¢100/lb in February.

In Latin America, particularly in countries like Brazil and Argentina, El Nino’s association with reduced rainfall during critical growing seasons contributed to lower yields for crops like corn, soybeans, and wheat.