Global demand for cocoa is projected to grow by 2.2% for the next crop season.
This is coming despite the expected decline in prices, as the current pressures on the price is expected to continue.
The International Cocoa Organisation is forecasting a global cocoa surplus of 165,000 tonnes for the 2020/21 crop season, up from a previous projection of 102,000 tonnes due to the larger than expected production from Ivory Coast and Ghana.
According to the Bank of Ghana’s repot on Global Economic Development report, farmers anticipate that the uncertain weather patterns in West Africa may undermine production levels in the coming season.
The expected decline in prices, the report said, could however be moderated by a marginal improvement in global demand projected at 2.2% for the season.
The stronger than anticipated second quarter Europe and North America grindings results will also underpin cocoa futures in the near term. August-September nearby futures are forecast to average US$2,300-2,375 a tonne compared with US$2,551 a tonne a year earlier.
Cocoa futures suffered some losses in June 2021
Cocoa futures suffered some loses in June 2021 as the bean closed the month at $2,407.5 per tonne.
This is compared to the $2,450.4 per tonne recorded in the month of May 2021, representing a monthly loss of 1.7 percent.
According to the Central Bank, sluggish demand due to the spread of Covid-19 new variant against ample supply mainly from top growers, that is Ghana and Ivory Coast, weakened prices.
Compared to the same period last year, the commodity gained 3.6% of its price due to hopes of an increase in demand after the Covid-19 vaccine rollout.
Also, cocoa beans and products exports for the period January to June 2021, amounted to $1.741 billion, improving by 12.9% compared with $1.542 billion million recorded for the same time in 2020.
Ghana may surpass anticipated 1.1m tonnes of cocoa production
Ghana may surpassed the anticipated 1.1 million tonnes of cocoa production for the 2020/2021 crop season which closes next month.
This will be about 45% increase over the previous year production of about 750,000 tonnes.
Joy Business sources at COCOBOD indicate that the nation might even record more than the 1.1 million tonnes of cocoa if the light crop season underway goes as planned.
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