NEW YORK: Cocoa futures on ICE gained 2% and hit a three-month high on Friday, buoyed by signs that demand is continuing to pick up after dipping in the early stages of the COVID-19 pandemic.

March New York cocoa settled up $50, or 1.9%, at $2,659 a tonne, having hit the highest price since Oct. 13 earlier in the session at $2,683 a tonne.

Dealers said the contract broke several resistance levels during the session, triggering more buying.

Asia’s fourth-quarter cocoa grind, a key indicator of demand, rose 6.33% year-on-year to 231,309 tonnes, data from the Cocoa Association of Asia showed on Friday.

The fourth-quarter European grind is due to be released on Jan. 19 and the North American grind on Jan. 20. March London cocoa rose 40 pounds, or 2.3%, to 1,773 pounds per tonne? after peaking at 1,776 pounds - the highest level for the front month since Oct. 19.