(CDC) - Cocoa prices rose to the peak during the past 3 years when having the rumor that chocolate manufacturers need to increase the amount of storage in the context of suppling cocoa from the West African limited.
Inventory can be enough to pressure the demand on 6 months, while industry needs sufficient inventory on 7-8 months, according to Eric Sivry, broker in charge of agricultural options in MAREX SPECTRON Group in London. Warehouse inventory volume of ICE stock fell 4% on this month, the 3rd consecutive decline.
Cocoa December delivery on Dec traded at £ 1,978 ($ 3,343) / ton on the Liffe floor, after rising 1.5% to £ 1,982, the highest level since July 21st, 2011. Cocoa beans traded on ICE floor rose 0.9% to $ 3,207 / ton at 12h28 P.M on July 30th in New York.
Ivory Coast and Ghana, the two largest producers in the world, is coming to an end of the 2013-2014 crop and usually does not start the new crop untill Oct. Ivory Coast sold 1.15 million tons cocoa beans from the new harvest, according to informed sources. The cocoa output of Ivory Coast in the 2013-2014 crop estimated to reach 1.7 million tons, according to data of the International Cocoa Organization (ICCO).
Ghana also sell pre-harvest output and produce 900,000 tons cocoa in 2013-2014, according to the ICCO.
Both Ivory Coast and Ghana have been sold 80% of the pre-hartvest output, "and the two countries have achieved the targets of pre-hartvest selling output in 2014 to 2015", Edward George, head of research at Ecobank Group located Togo, said.
Cocoa prices in the London market have risen 14% on this year. This is the 3rd consecutive season the output doesn’t meet the demand, the longest shortage chain in 47 years, according to data from Olam International Ltd and ICCO.
Source: Gafin / Bloomberg
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