December ICE NY cocoa (CCZ22) on Tuesday closed up +13 (+0.56%), and December ICE London cocoa #7 (CAZ22) closed up +10 (+0.52%).
Cocoa prices on Tuesday posted moderate gains. Â Cocoa prices saw support from news that Barry Callebaut, the world's largest chocolate maker, reported full-year sales of 8.09 billion Swiss francs, better than expectations of 7.94 billion Swiss francs. Â
Cocoa prices also have carry-over support from Monday on reports that the rainy season recently caused an outbreak of black pod disease in some west-African growing areas. Â In addition, cocoa farmers continue to struggle with the lack of fertilizer and pesticides. Â The war in Ukraine has limited Russian exports of potash and other fertilizers worldwide.
Cocoa prices also saw support from last Friday's report that showed Nigeria's Sep cocoa exports fell -16% y/y to 11,094 MT due to excessive rain. Â Nigeria is the world's fifth-largest cocoa bean producer.
Delays in the transportation of cocoa supplies from farms to ports in the Ivory Coast due to heavy rain are a near-term supportive factor for cocoa prices. Â The Ivory Coast government reported Monday that Ivory Coast cocoa farmers sent a cumulative 295,432 MT of cocoa to Ivory Coast ports for the 2022/23 season (which began Oct 1, 2022), down -20.6% from the same time last year. Â
Recent global cocoa demand has been mixed. Â The National Confectioners Association last Friday reported North American Q3 cocoa grindings fell -3.4% y/y to 119,244 MT. Â Also, the European Cocoa Association on Oct 13 reported that European Q3 cocoa grindings fell -1.6% y/y to 369,679 MT, the first y/y decline since Q1 of 2021. Â Conversely, the Cocoa Association of Asia said Asia Q3 cocoa grindings rose +9.5% y/y to 231,080 MT. Â Also, exporter group Gepex, which includes six of the world's biggest cocoa grinding companies, reported Q3 Ivory Coast cocoa grindings rose +18.1% y/y to 171.540 MT.
Cocoa prices found support when the International Cocoa Organization (ICCO) on September 1 cut its 2021/22 global cocoa production estimate to 4.890 MMT from a June forecast of 4.923 MMT and raised its 2021/22 global cocoa deficit estimate to -230,000 MT from a June forecast of -174,000 MT. Â In 2020/21, global cocoa production rose to a record 5.24 MMT, and in 2020/21, the global cocoa market was in a surplus of +215,000 MT.
In a bullish factor, Ghana reported on July 27 that its 2021/22 cocoa crop fell by -35% y/y to 685,000 MT, the smallest crop in 12 years, due to drought and swollen shoot virus. Â Ghana is the world's second-largest cocoa producer. Â However, the Ghana Cocoa Board estimates 2022/23 Ghana cocoa production will rebound +31% y/y to 850,000 MT.
Â
More Cocoa News from Barchart
- Sugar Prices Climb on Brazil Production Concerns and Shipment Delays
- Coffee Prices Relinquish Some of Monday's Sharp Gains
- Coffee Prices Slip on Dollar Strength
- Barchart Cuts Yield Forecasts For US Corn and Soybeans
/Advanced%20Micro%20Devices%20Inc_%20office%20sign-by%20Poetra_RH%20via%20Shutterstock.jpg)
