World cocoa market to see another supply surplus in 2017-18

NEW YORK: The world market will see a cocoa supply surplus of 88,450 tonnes in the current 2017-18 crop year, following a surplus of 347,600 tonnes last year, said Connecticut-based brokerage JSG Commodities on Thursday.

World production is expected to be 4.655 million tonnes in the current crop year that began Oct. 1, while total grindings are expected to be 4.52 million tonnes, said Eric Bergman, a broker with JSG Commodities in Norwalk.

Bergman said prices are likely to remain rangebound, given those conditions. Benchmark ICE New York cocoa futures have dropped 11 percent in 2017 so far, on track for their second straight annual decline.