Cocoa futures have hit record highs due to forecasts for a drop in production, particularly from Ivory Coast and Ghana, the world's top two producers that account for more than 70% of world output.Ivory Coast cocoa exporters and bean grinders have a purchasing limit each year in line with their export contracts. But the regulator - the Coffee and Cocoa Council - allows grinders an exemption so they can stockpile enough beans to cover 45 days of grinding operations.
But given the current context, the exemption will be unfair to exporters who will struggle to access necessary volumes to fulfil their export contracts, Yves Brahima Kone, managing director of the CCC told Reuters on Friday. Some Ivory Coast grinders told Reuters that the decision will affect their production. They had been operating at full capacity for the past two seasons as cocoa grind dips in Europe due to operational costs.
As a result, the monthly average of Ivory Coast cocoa grind has increased steadily, and reached nearly 60,000 metric tons per month in September from around 45,000 tons in 2019/2020, according to data from Ivory Coast exporters association GEPEX.
Source: News Formal (newsformal.com)
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