Quotes for cocoa remain high and quality is a concern, which are observations since the commodities markets have been studied.
IVORY COAST: Arrivals at Ivory Coast ports are 9% higher than in the same period last year. However, at a cumulative level, exports are still slowed down by the strikes at the ports.
GHANA: Purchases by the Ghana Cocoa Board in mid- December were 76% higher than in the same period last year.
Following this trend, global production in 2023/24 should grow, however, quality is a concern due to the impact of drought and hot Harmattan winds (from April) on the forthcoming African mid-crop.
As a result, cocoa bean prices, in the wake of an improvement in supply and a slowdown in demand, have fallen by 4% since the beginning of the year, but are still well above last year's levels.
The slowdown in raw material prices interrupted the ongoing increases in butter and cocoa mass, which nevertheless remain at high levels.
High consumption and uncertain supply, especially in terms of quality, will keep quotes higher than last year.
To read the full February 2023 Commodities Bulletin register here: