The global cocoa market is closely watching the latest estimates for the total supplies of cocoa beans from Ghana and Ivory Coast for the first half of the 2022/23 cocoa year. Based on the latest available information, it appears that the total supplies from these two top cocoa-producing countries is estimated at 2,345,846 tonnes, which is a slight decrease of 0.2% compared to the same period in the previous season.
This news is likely to have a significant impact on the cocoa market, given that Ghana and Ivory Coast together produce nearly two-thirds of the world’s cocoa beans. The slight decrease in supplies may be concerning to those in the industry, especially given the recent volatility in the cocoa market due to a range of factors such as climate change, pests and diseases, and political instability.
The decrease in supplies is mainly due to the year-on-year reduction of 89,000 tonnes in Côte d’Ivoire cumulative ports’ arrivals of cocoa beans over the first half of the 2022/23 cocoa year. This has been combined with an increase of 85,360 tonnes over the same period in Ghanaian purchases of graded and sealed cocoa beans, which has resulted in a slightly negative net effect. In other words, there has been a year-on-year decrease in the supply of cocoa beans from Côte d’Ivoire and Ghana taken together.
This development has been closely watched by analysts and industry insiders alike, as it could have significant implications for the cocoa market. In particular, the supply of cocoa beans has been a key factor in determining prices for cocoa in recent years, with any changes in supply having a significant impact on prices.
The decrease in supplies from Ghana and Ivory Coast comes at a time when there is already significant uncertainty in the cocoa market. The industry has been grappling with a range of issues, including rising temperatures, which have made it increasingly difficult for cocoa trees to grow in some areas. Additionally, there have been concerns about the spread of pests and diseases, which have also impacted yields in some parts of the world.
The slight decrease in supplies of cocoa beans from Ghana and Ivory Coast over the first half of the 2022/23 cocoa year is likely to have significant implications for the cocoa market. Given that these two countries produce nearly two-thirds of the world’s cocoa beans, any changes in their supply levels could have a significant impact on prices. Moreover, the decrease in supplies comes at a time when the cocoa industry is already facing a range of challenges, including rising temperatures, pests and diseases, and political instability. As such, this latest development is likely to be closely watched by industry insiders, analysts, and investors alike, as they seek to assess its potential impact on the market.
Source: norvanreports