On Thursday, cocoa prices decreased following faster harvest in the Ivory Coast, underpinning sharp losses.
US cocoa futures for December delivery plummeted by -3.84% to $6,756.00 per metric ton (MT) on October 24’s afternoon session.
As revealed in the data, individuals from the largest global supplier’s agricultural sector exported 192,804.00 MT of the bean from October 01 to October 20. Correspondingly, the output rate of the farmers increased by 12.90% from the shipped 170,794.00 MT in the previous year.
In line with this, Ivory Coast regulator Le Conseil Cafe-Cacao expanded its projection for the 2024/25 cocoa production. The council adjusted its range to 2.10 to 2.20 million metric tons (MMT) from the June forecast of 2.00 MMT, weighing down the commodity’s cost.
On the other hand, the advancements in Cameroon’s output, the world’s fifth-largest producer, heightens the bearish sentiments for the bean.
According to the National Cocoa and Coffee Board of the country, the production climbed by 1.20% to 266,725.00 year-over-year (YoY).
In the same sense, exports of chocolate’s primary ingredient from Nigeria improved by 6.80% to 14,984.00 MT YoY.
Meanwhile, the demand for cocoa across international borders incurred mixed results. Also, the National Confectioners Association reported a rise in Q3 grindings in North America.
Ghana Faces Low Crop Payments for Cocoa Farmers
Based on reports, the cocoa farmers in Ghana receive comparatively low payments for their crops, falling below international commodities values.
For this reason, individuals raised their concerns about how the West African republic does not incur significant price boosts, while the international market allows it.
Moreover, cocoa growers in the region only earn a wage that is under $2.00 per day, which is lower than poverty levels in the world.
In addition, the ongoing problem in Ghana prompted cases of persistent smuggling to neighboring African countries, where the bean commands higher prices.