Cocoa: grinding should decrease 148 thousand tons in 2019/20 with the perspective of falling global demand

Published 2020년 9월 1일

Tridge summary

The International Cocoa Organization (ICCO) forecasts a decrease in global cocoa milling demand, while global production prospects have been reduced. Despite these conditions, the cocoa market has shown resilience during the COVID-19 pandemic, with prices remaining high due to a less valued dollar in the international market. The cocoa market also faces concerns such as procurement issues and worker mobility. The ICCO predicts that the ratio of stocks to milling will increase to 38%, which is higher than the initial forecast of 31.5%. However, the price of cocoa has risen 1.2% to a six-month high of $2,654 per ton, likely due to a weak dollar and a positive market trend for agricultural commodities.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The International Cocoa Organization (ICCO) has said it expects demand for cocoa milling, globally, to fall from levels that were previously estimated, exceeding the drop in world production. In its most recent supply and demand report, ICCO projects that the global cocoa grind will be 4.64 million tonnes in the 2019/20 harvest. This represents 148 thousand tons below ICCO's previous projection. The group also reduced prospects for world cocoa production, but only by 26,000 tonnes, which means that ICCO expects the cocoa supply to increase at global levels. Commerzbank highlights the negative effects "significantly more pronounced on the demand side", disclosed in the ICCO report, but estimates that prices still remain high because of the less appreciated dollar in the international market. In a comment sent to customers on Tuesday, the bank's agricultural commodities analyst, Michaela Kühl, says that, in general, ICCO has shown that there is resilience in the cocoa market in the ...

Source: NoticiasAgricolas