On Tuesday, cocoa prices jumped after the head of the Ghana Cocoa Marketing Company announced the spread of disease in the Ivory Coast.
Cocoa futures for July delivery went up by 1.69% to $3,004.00 per metric ton on May 09’s Asian afternoon session.
Smaller outputs from the coast are positive for prices, according to analysts. The government reported that their farmers sent a cumulative 1.97 MMT to port for the 2022/23 marketing year. It was -4.60% down year-over-year.
Another factor from the bullish side is the decline in Nigerian exports. On April 27, the Cocoa Association of Nigeria reported its March shipments fell by -42.00% month-on-month. Also, it plunged by -34.00% YoY to 18,656.00 MT.
Furthermore, the signs pointing toward more robust demand are an advantage for the commodity’s price. As a result, grindings from North America, Asia, and Europe rose.
In addition, quality issues of some West African cocoa crops lessened price drops. Besides, farmers are experiencing an ongoing struggle with the lack of fertilizer and pesticides. This is a result of the war in Ukraine, which restricted Russian transport of potash and other fertilizers globally.
Due to the Cocoa Swollen Shoot Virus Disease, exports from the Ivory Coast fell. The data was said in a monthly report from the International Cocoa Organization. It stated that the coast’s deliveries dropped by -9.30% YoY to 530,314.00 MT.
Ghana Still Below Ivory Coast Cocoa Volumes
It was reported that the production in the Ivory Coast went down while outputs in Ghana increased. However, the volumes are not large enough as the coast remains the largest cocoa producer globally.
On March 09, Ghana hit a 566,846-ton production, which is 85,360.00 tons over the previous record in the 2021/22 year. It represents an 18.00% increase.
Based on the Cocoa Market Reports published on ICCO’s website, harvests from the Ivory Coast were at 1.779 million tons. It marked an 89,000.00-ton drop compared to the same period the previous year.
However, despite its plunge in numbers, it is still double the output Ghana produced.