AGL 5.78 Increased By ▲ 0.03 (0.52%)
ANL 8.88 Increased By ▲ 0.03 (0.34%)
AVN 78.93 Decreased By ▼ -0.57 (-0.72%)
BOP 5.29 Increased By ▲ 0.12 (2.32%)
CNERGY 4.70 Increased By ▲ 0.01 (0.21%)
EFERT 81.57 Increased By ▲ 0.47 (0.58%)
EPCL 50.96 Decreased By ▼ -0.03 (-0.06%)
FCCL 13.35 Decreased By ▼ -0.14 (-1.04%)
FFL 5.74 Decreased By ▼ -0.07 (-1.2%)
FLYNG 7.15 Decreased By ▼ -0.06 (-0.83%)
FNEL 4.82 Increased By ▲ 0.02 (0.42%)
GGGL 8.87 Increased By ▲ 0.17 (1.95%)
GGL 15.90 Increased By ▲ 0.15 (0.95%)
HUMNL 5.79 Decreased By ▼ -0.06 (-1.03%)
KEL 2.68 Increased By ▲ 0.10 (3.88%)
LOTCHEM 29.06 Decreased By ▼ -0.44 (-1.49%)
MLCF 24.99 Decreased By ▼ -0.31 (-1.23%)
OGDC 72.46 Increased By ▲ 0.01 (0.01%)
PAEL 15.35 Decreased By ▼ -0.05 (-0.32%)
PIBTL 5.06 Decreased By ▼ -0.09 (-1.75%)
PRL 16.31 Increased By ▲ 0.06 (0.37%)
SILK 1.08 Increased By ▲ 0.01 (0.93%)
TELE 9.39 Increased By ▲ 0.09 (0.97%)
TPL 7.34 Decreased By ▼ -0.01 (-0.14%)
TPLP 18.90 Decreased By ▼ -0.26 (-1.36%)
TREET 21.95 Increased By ▲ 0.10 (0.46%)
TRG 140.87 Decreased By ▼ -1.93 (-1.35%)
UNITY 17.01 Decreased By ▼ -0.19 (-1.1%)
WAVES 9.90 Decreased By ▼ -0.13 (-1.3%)
WTL 1.41 Increased By ▲ 0.03 (2.17%)
BR100 4,255 Increased By 7.1 (0.17%)
BR30 15,733 Decreased By -28.8 (-0.18%)
KSE100 42,394 Increased By 44.9 (0.11%)
KSE30 15,664 Increased By 31.9 (0.2%)
Markets

Cocoa prices seen falling below current levels at end of 2021

  • "Origins are behind on selling and the current market dynamics does not encourage (industry) buying early," said an industry source.
Published February 8, 2021
Follow us

NEW YORK: Cocoa prices are seen falling below current levels at the end of 2021 as demand remains slow due to the nagging impact from the coronavirus pandemic, and a large surplus in the global market is also expected in the 2020/21 season, a Reuters poll showed.

London cocoa futures were seen at 1,644 pounds per tonne on average at the year's end versus 1,699 pounds at the close on Friday, while New York futures were estimated to close 2021 at $2,438 per tonne compared to $2,587 on Friday.

"Farmers have struggled to sell beans over the last 12 months, in large part due to the impact of COVID-19 in the hospitality sector, with closures denting demand," said analyst Caroline Bain from Capital Economics.

According to her, COVID vaccines rollout and lifting of containment measures will be key to the market.

The pandemic has reduced grindings to as much as 10% compared to last year as out-of-home consumption of chocolate fell strongly.

But even if vaccination allows for a recovery in the hospitality sector, a large surplus will be left after that, the analysts said.

The poll with 12 market participants saw a supply surplus of 218,000 tonnes in 2020/21 versus a much smaller surplus of 19,000 tonnes in 2019/20 estimated by the International Cocoa Organization (ICCO).

"Origins are behind on selling and the current market dynamics does not encourage (industry) buying early," said an industry source.

Poll participants also cited as a bearish factor in the market the $400/tonne living income differential (LID) introduced last year by top producers Ivory Coast and Ghana, which led some consumers to be more conservative in their buying, helping to boost stocks at origins.

Cocoa production in number 1 grower Ivory Coast was seen at 2.17 million tonnes in 2020/21, compared to 2.1 million in 2019/20, while output in number 2 producer Ghana was seen at 879,000 tonnes versus 800,000 tonnes in 2019/20.

Comments

Comments are closed.

Cocoa prices seen falling below current levels at end of 2021

Pakistan's CPI-based inflation in November clocks in at 23.8%

Rupee registers gains, settles at 223.69 against US dollar

Rise in TTP attacks in Pakistan should be concern for Afghan Taliban as well: Rana Sanaullah

SBP-held foreign exchange reserves fall $327mn, stand at $7.5bn

Fawad says PTI to dissolve Punjab, KP assemblies next week

PM Shehbaz calls for ‘practical implementation’ of loss & damage fund to cope with climate challenge

EU tentatively agrees $60 a barrel price cap on Russian seaborne oil

No restrictions placed on LCs for import of oil, other petroleum products: SBP

Record-breaking England put Pakistan to the sword in first Test

Google app payments: IT ministry says issue resolved