ICCO DAILY COCOA PRICES LONDON (LIFFE) FUTURES MARKET UPDATE NEW YORK (ICE) FUTURES MARKET UPDATE FROM THE NEWS MEDIA o Workshop on promotion of consumption of chocolate and cocoa products, Abidjan, Cote d’Ivoire, 15 th – 17 th May, 2012. COPAL COCOA COPAL COCOA Info Info A Weekly Newsletter of Cocoa Producers' Alliance Health and Nutrition Production and Quality Government Okays RM12.54 Million For Cocoa Replanting Country-Wide The Market Ivorian cocoa prices rise on Ivory Coast cocoa premium is seen at as much as 85 Pounds Labour Issues Environmental Issue El Nino could cut global 2012/13 Do your health a favour, drink Cocoa everyday UP-COMING EVENTS IN THIS Issue No. 492 14 th – 18 th May 2012
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INSIDE THIS ISSE: ICCO DAILY COCOA PRICES LONDON (LIFFE) FUTURES
MARKET UPDATE NEW YORK (ICE) FUTURES
MARKET UPDATE FROM THE NEWS MEDIA
o Workshop on promotion of consumption of chocolate and cocoa products, Abidjan, Cote d’Ivoire, 15th – 17th May, 2012.
COPAL COCOACOPAL COCOA InfoInfo A Weekly Newsletter of Cocoa Producers' Alliance
Health and Nutrition
Production and Quality Government Okays RM12.54 Million For Cocoa
Replanting Country-Wide
The Market Ivorian cocoa prices rise on quality, demand-
farmers Marex Spectron says cocoa delivery may be
‘Above Expectations’ Europe cash cocoa: Economic concerns weigh on
butter demand
Processing and Manufacturing Cameroon cocoa grinder purchases hit 28,033 T
Business & Economy Ivory Coast cocoa premium is seen at as much as
85 Pounds
Labour Issues
Environmental Issue El Nino could cut global 2012/13 cocoa output:
ICCO Rainforest Alliance honors Global Environment
Facility
Research & Development
Promotion & Consumption
Do your health a favour, drink Cocoa everyday
‘It’s nature’s miracle food’UP-COMING EVENTSUP-COMING EVENTS IN THISIN THIS
Issue No. 492 14th – 18th May 2012
Others
In the News (from Newspapers worldwide)
ICCO Daily Cocoa PricesICCO Daily Price
(SDR/tonne)ICCO Daily price
($US/tonne)London futures
(£/tonne)New York futures
($US/tonne)
14th May 1515.16 2324.47 1494.67 2242.67
15th May 1527.52 2341.87 1500.33 2282.00
16th May 1551.81 2366.13 1526.67 2302.33
17th May 1521.05 2317.62 1513.33 2243.33
18th May 1540.39 2348.33 1532.67 2279.33
Average 1531.00 2340.00 1514.00 2270.00
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Government Okays RM12.54 Million For Cocoa Replanting Country-WideBernamaBy SANDAKAN, May 15 , 2012(Bernama) -- The Government has sanctioned RM12.54 million to plant high-yield cocoa trees in 1,567 hectares nationwide, Cocoa Board of Directors Chairman Datuk Siringan Gubat said today.
Of the total hectarage, 750 hectares are identified in Sabah, with 300 hectares in Ranau district, 200 hectares in Tenom), 150 hectares (north and west coasts) and 100 hectares (east coast), he said.
"This replanting programme is the board's effort to increase cocoa-planted areas in the country and to reduce cocoa imports," he said at the opening of a basic cocoa technology course for new cocoa growers by Kuamut assemblyman Masiung Banah.
Siringan said currently cocoa-grown areas in the country were very low at only 20,500 hectares, with cocoa production at 4,600 tonnes. He said the total output was inadequate to meet the demand of cocoa- grinding factories which require 300,000 tonnes."The country needs to increase cocoa output in efforts to significantly reduce cocoa imports," he said.
Seventy-two new cocoa growers are attending the three-day course which started yesterday.
Under the replanting programme, the participants will receive RM8,000 replanting grant for a hectare per year.
Ivorian cocoa prices rise on quality, demand-farmersReuters AfricaBy Loucoumane CoulibalyMay 15, 2012 (Reuters) - Farmgate cocoa prices in Ivory Coast's main growing regions rose last week, supported by improved quality of beans and firm demand from buyers for export and local grinding, farmers and buyers said on Tuesday.
The mid-crop in the world's top cocoa producer is marketed from April to September, but a five-month dry spell that carried into March delayed the start of harvesting. Farmers said the first beans of the crop are now starting to leave the bush.
The International Cocoa Organisation said last week that Ivory Coast's total output for the 2011-2012 season is seen at 1.35 million tonnes, down from last year's record of around 1.5 million tonnes, due to weather.
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In the western region of Duekoue, farmers said the average price rose last week to between 575 CFA francs ($1.13) per kg and 600 CFA/kg, from 500-550 CFA/kg the previous week as improved bean size triggered strong demand from buyers."Prices are going up because the quality is improving," said Amara Kone who farms near Duekoue.
"Demand is strong and we are seeing bean sizes of about 115 beans per 100 grams. Three weeks ago they were still between 120 and 130 beans per 100 grams," Kone said in reference to export requirement which stipulates that anything above 115 beans per 100 grams are not eligible for exports.
In the centre-western region of Daloa, which produces about a quarter of Ivory Coast's national output, farmers said farmgate prices rose to 575-625 CFA/kg, from 550-600 CFA/kg.
In the western region of Gagnoa, farmers said the average price was around 600 CFA/kg, from 550-575 CFA/kg. "Because there was not enough cocoa in the past months, buyers are scrambling to get their hands on as much cocoa as they can and are putting farmers under pressure," said local farmer and cooperative manager Francois Badiel.
In the western region of Soubre, at the heart of the Ivorian cocoa belt, farmers said the average price was steady about 650 CFA/kg. ($1 = 510.9490 CFA francs)
Marex Spectron says cocoa delivery may be ‘Above Expectations’BloombergBy Isis Almeida May 17, 2012 Cocoa delivered against the expired May futures contract on the NYSE Liffe exchange in London is estimated at about 41,000 metric tons, according to futures and options broker Marex Spectron Group.
That would be “above expectations,” Eric Sivry, the London-based head of the agriculture options brokerage at the company, said in a report e-mailed today.
Cocoa deliveries against the March contract this year totaled 26,120 tons, exchange data show. Last year, the delivery of the May contract was 21,870 tons, the data show. The May 2012 futures expired yesterday.
Europe cash cocoa: Economic concerns weigh on butter demandReutersMay 18, 2012 AMSTERDAM, May 18 (Reuters) - Demand for cocoa butter, a key ingredient in chocolate, was slow in the past week with industry attention focused on the euro zone crisis and its impact on consumption, traders said.
Trade slowed further towards the end of the week during Thursday's Ascension Day public holiday in most Western European countries.
Price ratios for cocoa butter in the European cash cocoa market were unchanged from last week at 1.05 times London bean contracts.
"We have seen some activity, mostly from traders," one trader said. "The industry is reluctant to buy more. They are worried about the outcome of the economic crisis in Europe."
"The industry is trying to assess how much they will need, they don't know what will be the impact of the crisis on chocolate consumption," another trader said.
Buyers are putting off orders for Christmas due to financial market uncertainty.
Price differentials for cocoa beans in the European cash market were little changed as the market focused more on the main crop in Western Africa's key growing regions.
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"I think that the cocoa market held up well compared to metals and grains, for example," one bean trader said.
"The main focus now is the main crop and the crisis in Europe."
Ivory Coast differentials were about 60 pounds ($94.88) over London nearby cocoa futures contracts, compared with 55 last week. Ghana differentials were 90 pounds over London nearby cocoa futures, 10 pounds lower than last week.
Valid cocoa stocks in NYSE Liffe's nominated warehouses rose to 64,260 tonnes as of May 14, up from 62,720 tonnes on April 30, exchange data showed.
Possible El Nino weather conditions later this year could exacerbate a potential global cocoa deficit in the coming 2012/13 season, causing prices to climb, the International Cocoa Organization (ICCO) said on Thursday.
Cameroon cocoa grinder purchases hit 28,033 TReuters AfricaBy Tansa Musa May 18, 2012 YAOUNDE May 18 (Reuters) - Cameroon's sole cocoa grinder, Sic-Cacaos, bought 28,033 tonnes of beans by the end of April since the start of the 2011/12 season in August, according to figures issued on Friday by the National Cocoa and Coffee Board (NCCB).
The figure compares with 26,287 tonnes bought in the first nine months of the season last year.
Purchases in April were down to 98 tonnes from 269 tonnes the previous month and 255 tonnes during the same month last year.
Sic-Cacaos, based in Cameroon's economic capital and main port city Douala, is a subsidiary of Swiss chocolate firm Barry Callebaut and supplies cocoa products to the central African region.
It has a grinding capacity of 30,000 tonnes per year, but last year purchased a record 33,894 tonnes, putting excess tonnage in storage.
Ivory Coast cocoa premium is seen at as much as 85 PoundsBloombergBy Isis Almeida @ [email protected] 18, 2012 Ivory Coast cocoa from the season starting in October was at a premium of as much as 85 pounds ($134) a metric ton on speculation shipments may be delayed.
The premium for Ivorian beans in Europe to the price on the NYSE Liffe exchange in London ranged from 45 pounds, depending on the shipment period and on the quality agreed, according to three traders with direct knowledge of the sales, who declined to be identified because they aren’t authorized to speak to the media. A higher premium was being charged for shipments in the fourth quarter, the traders said.
There are concerns the implementation of a new selling system in Ivory Coast will lead to “substantial” delays in exports, Jonathan Parkman, co-head of agriculture at broker Marex Spectron Group in London, said last month.
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Ivory Coast, the biggest grower, plans to sell 70 percent of its 2012-13 crop before the harvest starts as part of wider industry reforms. The so-called forward sales started on Jan. 31 even as some details of the reform still need to be finalized.
An agreement with cocoa exporters over transportation and handling fees will be reached by Sept. 15, Agriculture Minister Mamadou Sangafowa Coulibaly said this week.
Cocoa from the current crop in Ivory Coast is not trading in Europe as the main crop has ended, the traders said. The smaller of two annual harvests, known as the mid-crop, is “off to a slow start,” according to Laurent Pipitone, director of the economic and statistics division at the International Cocoa Organization in London.
Beans from the current crop in Ghana, the second-largest producer, were trading in Europe at a premium of 75 pounds to 85 pounds a ton, unchanged from last week, the traders said. Cocoa from the new crop was at a premium of 90 pounds to 100 pounds a ton, from 90 pounds to 95 pounds a ton last week.
Premiums for the new crop in Ghana may be supported by potential export delays in Ivory Coast, the traders said.
Cocoa for July delivery rose 1.6 percent to 1,552 pounds a ton by 3:34 p.m. in London.
El Nino could cut global 2012/13 cocoa output: ICCONewsDay 2012-05-17 LONDON - Possible El Nino weather conditions later this year could exacerbate a potential global cocoa deficit in the coming 2012/13 season, causing prices to climb, the International Cocoa Organization (ICCO) said.
"We know that when we have El Nino conditions it's likely that this will impact negatively on world cocoa production. We would have less production and this would have an impact on price," ICCO statistician Laurent Pipitone told Reuters.
"If we are in a period when we have already a deficit, and in addition we have this factor that adds to the deficit, the impact on price would be even higher," he added.
El Nino - the warming of the Pacific Ocean leading to a shift in weather patterns - caused a drop of 2.4 percent in world cocoa output on average when it occurred over the last 60 years, according to ICCO data.
Such a drop equates to around 100,000 tonnes of cocoa at current production levels, Pipitone said.The ICCO has predicted a deficit of 71,000 tonnes in 2011/12 (October-September), after a record surplus the previous year, when ideal weather boosted West African output. West Africa produces around two thirds of the world's cocoa, led by Ivory Coast.
ICE cocoa futures prices hit a 32-year high in March last year after a disputed presidential election saw a temporary ban on cocoa exports in Ivory Coast, but prices have since fallen by around 40 percent.
Pipitone said that crop prospects for the tail of West Africa's 2012/13 October-March main crop along with the 2012/13 April-September mid crop was most at risk from potential El Nino weather conditions later this year.
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The ICCO bases its expectations on whether there will be El Nino conditions on predictions from The National Oceanic and Atmospheric Administration (NOAA) and The Australian Government Bureau of Meteorology.
"A lot of the dynamical models are leaning towards a weaker El Nino developing," said Mike Halpert, deputy director of the Climate Prediction Centre, an office under the NOAA.
"But given that it is still a fairly long lead forecast we're not likely to say anything more definitive on whether we'll see El Nino develop later this year until June at the earliest."
Five out of seven of the Australian Government Bureau of Meteorology's forecast models indicate El Nino conditions from September 2012, according the Bureau's website.
SOFT SPOTS
The effect of El Nino weather events on the cocoa crop differs according to the duration, severity and time in the crop cycle at which the weather arrives.Such weather typically means drier conditions in Malaysia, Papua New Guinea, the Philippines and Indonesia, the third's largest cocoa producer, where the harvest has fallen 2.4 percent on average during past El Nino periods.
West Africa also sees lower rainfall, with average drops of 2.03 percent and 1.72 percent in the world's first and second largest producers, Ivory Coast and Ghana.
But the worst affected country is Ecuador, where the cocoa harvest shrinks 6 percent on average during El Nino, according to ICCO data. Though it accounts for just 4.5 percent of world cocoa, Ecuador is the world's fastest growing producer, and its output is expected to grow to 175,000 tonnes in 2011/12.
Pipitone said Ecuador's production was growing at a rate of around 10 percent per year.
Ecuador supplies about half of the world's fine cocoa beans, favoured for high-quality chocolate in Belgium, Switzerland, Italy and France, meaning El Nino weather could affect luxury chocolate brands in particular.
Fine cocoa beans from different countries each have a particular flavour, Pipitone said, meaning luxury brands cannot easily switch from one bean to another in the case of scarcity. "When there is a reduction of production in Ecuador it has a great impact on the finer flavour market," Pipitone said.
Rainforest Alliance honors Global Environment FacilityWorldStageBy Press ReleaseMay 17, 2012
Forest
The Global Environment Facility (GEF) tonight was presented with the 2012 Sustainable Standard-Setter award by the Rainforest Alliance at its 25th annual gala for work in supporting the sustainable cultivation of cocoa in rainforest regions. The gala honors individuals and organizations from the public and private sectors whose work in the environment protection and conservation proved great impact to communities around the world. GEF CEO and Chairperson Monique Barbut received the award on behalf of The Global Environment
Facility.
The award recognizes the partnership between the Rainforest Alliance and the GEF to bring 10% of the world’s cocoa supply – some 1.85 million acres – into more sustainable systems of production that will help conserve the extraordinary biodiversity of tropical regions. The GEF has supported the Greening of the Cocoa
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project with a $5 million grant and cofinancing of $15 million, funds that will help improve farming practices to conserve the environment, increase farmers’ income, benefit families and communities, and provide long-term sustainability for the cocoa industry. The program involves cocoa cultivation in ten countries: Brazil, Côte d’Ivoire, Dominican Republic, Ecuador, Ghana, Indonesia, Madagascar, Nigeria, Papua New Guinea, and Peru. The aim is to develop and apply sustainable agriculture standards and promote business production principles that will protect the environment while allowing local farmers and communities to benefit from viable business models.
“The GEF wants to engage the private sector to become more active at the local and international levels, and facilitate the transfer of technology for the valorization of resources” said Monique Barbut.
The Rainforest Alliance was established 25 years ago with the goal of conserving biodiversity and promoting sustainable livelihoods by providing farmers, forest managers and tourism businesses with the tools to realize greater economic benefits while conserving local biodiversity and ecosystems.
“Our anniversary gala awards ceremony provides us with the opportunity to recognize companies that have worked hard alongside us to promote environmental and social responsibility” said Tensie Whelan, president of the Rainforest Alliance.
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