On Monday, cocoa prices declined as the Ivory Coast’s crop production improved, which is bearish for its costs.
In the Asian afternoon session, the commodity’s futures for December contracts slid by -0.89% to $7,384.00 per metric ton.
In addition, West Africa’s government data revealed that from October 1 to October 20, local farmers exported 192,804 metric tons (MT) of cocoa to ports. This report is 12.90% better compared to last year’s 170,794 MT.
Furthermore, the commodity’s prices slid after last week’s increase in the 2024/25 production forecasts by the Ivory Coast regulator, Le Conseil Cafe-Cacao. It expects a 10.00 surge to 2.10 million metric tons (MMT) to 2.20 MMT from a previous June outlook of 2.00 MMT.
On the other hand, reports indicated that global cocoa demand was mixed. The National Confectioners Association revealed that North American third-quarter grindings surged by 12.00% annually to 109,264 MT.
Moreover, the Cocoa Association of Asia noted that Q3 Asian grinding increased by 2.60% yearly to 216,998 MT.
Nevertheless, the European Cocoa Association showed that its current quarter’s grindings plummeted by -3.30% year-on-year to 354,335 MT.
Additionally, Cameroon’s increased production has affected the cocoa prices. According to reports, the country’s National Cocoa and Coffee Board released that output surged by 1.20% annually to 266,728 this season.
Abia Shifts to Halt Cocoa Smuggling to Neighboring States
The Abia government has told the State Cocoa Monitoring Team to stop the activities of smugglers who export beans from the country to neighboring states through border villages.
According to reports, the deputy governor, Ikechuchwu Emetu, spoke to the newly inaugurated team to encourage them to use cocoa farming and its value chain to address youth unemployment.
Emetu stated that the cocoa subsector could enhance Abia State’s Internally Generated Revenue (IGR). He also mentioned that the anti-smuggling team is tasked with searching vehicles suspected of transporting cocoa to neighboring states.
Furthermore, the monitoring team is responsible for conducting regular inspections of produce within Abia and imposing fines on identified violators.