The latest Cocoa Market Report by the International Cocoa Organization (ICCO) shows that Ghana has surpassed Ivory Coast in cocoa production over the half-year 2022/23 crop season.
The report states that as of 31 March 2023, cumulative arrivals of cocoa beans in Ivory Coast were lagging behind previous season levels, while the volume of graded and sealed cocoa beans purchased in Ghana since the start of the 2022/23 season increased by 18 percent compared to the previous year. Despite this increase, the total supply of cocoa beans from the world’s top-two cocoa producers for the first half of 2022/23 is estimated to be slightly down by 0.2 percent compared to the previous season.
The report also notes that the current state of play is subject to change as the mid-crop progresses. However, this development is significant as Ivory Coast has been the world’s top producer of cocoa for several years. Ghana’s cocoa production has been boosted by several initiatives in recent years, including the introduction of modern farming techniques, better access to credit and markets, and increased investment in infrastructure.
The Ghana Cocoa Board’s (COCOBOD) Cocoa Health and Extension Division provides farmers with free seedlings, subsidised fertilisers and pesticides, as well as training on how to properly plant and care for their cocoa trees, leading to higher yields and better quality cocoa beans.
The report also shows that cocoa bean stocks held in Intercontinental Exchange (ICE) Futures licensed warehouses in Europe and the United States are high compared to the first half of the 2021/2022 season. Despite their declining trend compared to the levels seen at the start of the 2022/23 cocoa year, stocks of cocoa beans in Europe averaged 185,153 tonnes, up by 20 percent compared to 154,731 tonnes recorded a year earlier. The average cocoa bean stocks in exchange-licensed warehouses in the United States have also increased by 7 percent from 318,731 tonnes to 341,497 tonnes.
Regarding futures price developments, the front-month cocoa futures prices averaged US$2,440 per tonne, up by 6 percent compared to US$2,304 per tonne recorded a year earlier in London. In New York, prices of the nearby cocoa futures remained flat at US$2,560 per tonne during the first semester of 2022/23, merely up by 0.4 percent from US$2,550 per tonne recorded during the first semester of the 2021/22 cocoa season.
In March 2023, prices of the front-month cocoa futures contract averaged US$2,553 per tonne in London, up by 12 percent compared to the average price of US$2,273 per tonne for the nearby contract recorded in the same period of the 2021/22 cocoa year. In New York, the average price of the first position contract settled at US$2,778 per tonne, up by 8 percent from US$2,564 per tonne recorded in March 2022.
Source: norvanreports.