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For anyone currently watching cocoa markets, this statement might sound familiar: “It’s a complete mess at the moment. I wish Ghana and Cote d’Ivoire would talk and listen”. But why the accusatory stance on these producing countries? Cut to the chase and US chocolate-maker, Hershey’s, is expected to take delivery of a large volume of
Food and fertiliser importers will have to source foreign exchange independently of the central bank as part of efforts to stem forex outflows and narrow Nigeria’s trade deficit. The country’s trade deficit widened to NGN 178.2 billion in June 2020, the largest in over 15 years. Nigeria spent 16 percent of its total import bill
Two weeks ago, WTI crude for May delivery tumbled deep into negative territory. Some could argue the writing was on the wall when major #African producers failed to secure buyers from staple and long-haul markets, against a backdrop of severely limited storage capacity. Even now, markets in contango offer little comfort to naturally-long or speculatively-short
By Sona Ebai Jr. Opinion: Despite billions of CFA francs being spent to train farmers, more action to achieve good quality beans is needed with fierce urgency. The Cameroonian government plans to pay farmers a premium totaling up to 1 billion FCFA (US$ 1.8 million) to enable them produce higher
by Auguste Aouti-Communications officer (chargé de communication) at the inter-African Coffee Organization, Côte d’Ivoire KALDI, un jeune berger Ethiopien, a constaté un jour que la consommation des vives petites baies rouges qui poussaient dans la brousse aux alentours par son troupeau avait un effet énergisant sur lui. Il en mâcha à son tour quelques-unes et
Franc view: The combination of tighter supply, rising demand and positive short-term technicals (the RSI appears deeply oversold) suggest cocoa prices will not return to the doldrums of 2017. The Ball Cocoa’s glittering rise, from $1,809/tonne on December 22, 2017 to a high of $2,914/tonne on May 1, 2018 (NY futures), was reminiscent of the
A mammoth deal: Côte d’Ivoire, the world’s top producer and exporter of cocoa, has issued a $2.1 billion Eurobond, in what is the biggest recorded euro issuance from an African government. The maturity of the bond is split, with tranches due in 2030 and 2048. Market data indicate this is the second biggest EUR Eurobond offering
Near perfect weather Intermittent rain and sunshine in the West African Cocoa Belt, spanning Cameroon to Côte d’Ivoire, suggests weather concerns are not clouding prospects for the 2017-18 cocoa harvest and hope for a weather premium on the imminent crop remains dim for now. New season cocoa battles for relevance To a large extent, the
Franc view: Cocoa’s implacable market has claimed a scalp in the name of Japanese trader Itochu Corp, via its partnership with the Transmar Group. Transmar currently faces a precarious financial situation which could impact its other investments along the West African cocoa belt, most recently the cocoa processing unit in Douala, Cameroon – Noha Nyamedjo
Franc view: In October 2016, franctrade.com forecast a bearish cocoa market, with significant downside risks anticipated in the second half of the season (see article). While the collapse in cocoa market futures may now appear overdone, particularly given fledgling political risks in the West African region, we retain our base case that markets may have
