(Bloomberg) — Cocoa futures returned to gains following on the heels of the biggest weekly loss since October as supply fears continue to drive volatile swings on the pricey market.

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Prices in London and New York both gained around 4% on Monday before paring back. The jump comes after New York futures tumbled over 15% last week, the biggest such decline since late October.

Concerns over crops in West Africa, where the majority of global production is concentrated, have driven the market, making cocoa one of the hottest commodities of the year.

While some market players are taking profits on the back of the record high prices, others are concerned that another poor harvest means even tighter supplies as exchange certified stockpiles continue to dwindle to a nearly two-decade-low.

In other agricultural markets, corn futures rose over worries that dry weather in Argentina may put a strain on crops. While showers this week may help slow the expansion of plants under stress, the risk from dry weather still remains, according to a note from the Commodity Weather Group.

Gains for corn and other grains also come as “the good weekly export sales figures provided support for prices as the last sessions of 2024 approached,” wrote analysts at Argus, citing recent US data.

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