Ghana has indicated that it is preparing for its biggest harvest in at least a decade after good weather and government intervention – including improved farmer prices and better farming practices like hand pollination and pruning – ended production by the 3rd crop harvest, Bloomberg reported.
The higher than expected production in both Ghana and Ivory Coast is contributing to a global surplus, with cocoa supply likely to exceed demand by 165,000 tons in the 2020-2021 season, the International Cocoa Organization (ICCO) said in May. The ICCO had estimated that Ghana would produce 950,000 tons that year.
In its latest monthly cocoa market report for July 2021, the ICCO said the renewal of lockdowns in Asia and some European countries to combat the fast-spreading delta variant of COVID-19, which could harm the global economy and thus the cocoa industry, weighed on cocoa prices .
Between July 21 and 30, prices continued to decline, rising in both markets in response to robust regrind increases in major cocoa consuming regions, namely Europe, Asia and North America.
In London, the prices of the SEP-21 contract increased by 5% from $ 2,150 to $ 2,250 per tonne, while in New York prices of the nearby cocoa contract increased by 4% from $ 2,265 to $ 2,365. Dollars per ton went up.
In Europe, 7,960 tonnes of cocoa beans were exchanged in July, compared to 9,280 tonnes that were tendered in the same period in 2020. The difference for Ghanaian cocoa averaged $ 301 per tonne in July 2021, 55% lower than the recorded US $ 672 per tonne in October 2020. The difference in origin for Ivorian cocoa beans also decreased by 67% from $ 527 to 171 US dollars per ton.
Exchange-rated cocoa rose 17,100 tons year over year to 136,800 tons in Europe and 79,133 tons to 95,487 tons in the United States, the ICCO reported.
She also warned that the origins disparities continued to weaken in July year over year in both Europe and the United States. Falling cocoa bean prices in the futures markets maintained the supportive effect on cocoa powder prices and put downward pressure on cocoa butter prices.
The outlook on the milling results published by the major regional cocoa associations for the second quarter of 2021 indicated a resumption of cocoa processing activities in Europe, Asia and North America.
“There is no shortage of cocoa at the moment … but there are concerns that the main harvest beginning in October in both countries may not reach the high levels of last year,” a Commerzbank market analyst told Reuters. .