Cocoa Prices Mixed, Focus On El Nino

Southeast Asian cocoa prices were mixed on Wednesday, with players keeping an eye on the El Nino weather pattern forming off South America, traders said.

Indonesian prices were at a record high amid keen buying and speculative interest while supply remained tight in neighbouring Malaysia with barely any new arrivals from the main harvest.

Indonesian fair, average quality (FAQ) cocoa was quoted at 3,300-3,400 rupiah per kg in Ujung Pandang, capital of the key growing region of South Sulawesi, compared with 3,000-3,100 rupiah a week ago and unchanged from Tuesday's levels.

Cocoa was quoted at 3,450 rupiah/kg in the North Sumatran capital of Medan, against 3,486 rupiah last week. "The market is active, with buyers looking to the districts for supply to cover contracts," one Indonesian trader said.

 

The traders said though supply in Ujung Pandang was currently ample, they felt that cocoa arrivals might begin to decline from next month. "Some districts are reporting tight supply because of bad weather in the past," one trader said. "According to my data, arrivals in Sulawesi totalled some 95,000 tonnes from January to May this year, he said.