On Thursday, cocoa prices slipped, posting a three and a half week low, due to rain in West Africa, accelerating the likelihood of better crops for the region.
US cocoa futures for December shipments declined by -5.47% to $6,853.00 per metric ton (MT) on September 04’s Asian afternoon session.
The beans’ prices were weighed on by Nigeria’s July exports, climbing by 31.00% year-over-year (YoY) to 17,456 MT. Moreover, robust output from the fifth largest producer globally, Cameroon, pressured costs as it reported that 2023/24 production boosted by 1.20% YoY.
According to reports, cocoa has been slipping since early September, dipping by 8.00%, similar to its status from the past two major rollovers. It rose from $1,500.00 to around $2,000.00 per contract. However, it had a significant drop by 30.00% to 38.00% when it reached the $7,000.00 test level.
Last week, the crop rallied to a 2-1/4 month gain amid concerns of extreme dryness in West Africa, which curbed its production.
Based on forecasters, the top producing countries, Ivory Coast and Ghana, had a substantial decline in rain showers over the past month. As a result, the below-than-normal soil moisture constricted crop growth.
Meanwhile, the International Cocoa Association increased the beans’ 2023/24 global deficit last Friday to -462,000 MT compared to the -439,000 MT estimate in May.
Ghana to Increase Cocoa Farmgate Price
Reports stated that Ghana plans to raise the state-guaranteed price for cocoa farmers by almost 45.00% for 2024/24’s crop season. They aim to accelerate farmers’ income and halt the smuggling of the soft commodity out of the country.
According to analysts, the major producers of the beans globally, Ghana and Ivory Coast are struggling with poor harvests this season.
The cocoa price review committee in Ghana set costs at 48,000.00 cedi ($3,074.35) per ton for the 2024/25 season, a slight increase of 45.00%
