Because African rainfall big, bring about cocoa production cuts
Tag: African cocoa, African cocoa production cuts
Summary: The west African country of cocoa production every year are very delicious, but this year because the amount of rainfall reasons production cut a lot.
The west African country of cocoa production every year are very delicious, but this year because the amount of rainfall reasons production cut a lot.
“Recent rains in West Africa have been plentiful, particularly in Ghana, and this is positive for the development of the mid-crop and the new crop,” said Eric Sivry, the London- based head of Marex Spectron’s agriculture options brokerage. “Many analysts have been caught by surprise.”
Global output should about match demand in the crop year ending in September, compared with the 94,000-metric-ton deficit seen last month, according to estimates by Marex Spectron Group, which trades the beans in New York and London.
Prices may drop 14 percent to $2,000 a ton by July, according to Rabobank International and Lome, Togo-based Ecobank Transnational Inc., which financed $227 million of cocoa and coffee trading in 2011.
Prices rose as much as 21 percent in the past two months as dry winds blowing from the Sahara toward the Atlantic battered West African plantations before a mid-crop harvest that starts next month.
Farmers have struggled to keep up with a 38 percent expansion in the chocolate market since 2006, which London-based Euromonitor International Ltd. values at $105 billion. Cocoa output rose 15 percent to 3.96 million tons since 2006-07, according to the International Cocoa Organization.
Cocoa climbed 9.8 percent to $2,315 this year on ICE Futures U.S. as the Standard & Poor’s GSCI index of 24 commodities advanced 9.9 percent. The MSCI All-Country World Index of equities rose 11 percent. Treasuries lost 0.9 percent, a Bank of America Corp. index shows.