Mixed Trend Witnessed In Asian Cocoa Prices

Asian cocoa prices were mixed this week with the Malaysian market steady on the back of tight supply of beans, while prices in Indonesia followed a weak overnight CSCE market in New York.

Production was also varied, with Malaysian dealers experiencing an unusually bad mid-year crop, while Indonesian traders reported a steady supply of cocoa beans, but with slower demand.

"There are very little local beans in the Malaysian market. Grinders are buying whatever they can from Indonesia," said a plantation source in Tawau, Malaysia's main cocoa area.

Estimates of national bean production were not immediately available for the April/May/June crop. But one of Tawau's key cocoa plantations reported that its own output fell 61 per cent during the period, compared to a year ago.

 

On Wednesday, the Malaysian Cocoa Board quoted Standard Malaysian Cocoa (SMC) Grade 1A out of Tawau at an average of 3,343 ringgit (($1 = 2.52 ringgit) a tonne and Grade 1B, also out of Tawau, at an average of 3,310 ringgit.

Compared to Tuesday, the 1A was down seven ringgit while the 1B was up 10 ringgit. But compared to a week ago, the grades rose 23 ringgit and 40 ringgit, respectively.

On Wednesday, the market price of 1A was around 3,395 ringgit and 1B around 3,320-3,340.

In Indonesia, prices declined under pressure from a sharp fall in New York overnight. "Prices have weakened in line with the fall in New York," a trader said. "Fundamentals are not very supportive, and I think prices will remain weak next week."

They said, cocoa was quoted at 2,900-2,950 rupiah/kg (1$ = 2,430 rupiah),in Ujung Pandang, capital of the key growing region of South Sulawesi, compared with 2,950-3,000 on Tuesday. (Reuter)