Apr 27 - ADM replaces top trader amid global shakeup - memo
Archer Daniels Midland Co has replaced the leader of its global trading desk, the company confirmed to Reuters on Wednesday, as it sheds traders around the world amid a global grains glut that has squeezed profits.Gary McGuigan, most recently managing director of global trade at ADM will succeed Gary Towne as president of the global trade desk, ADM said. Reuters first learned of the appointment from an internal company memo that was leaked in Argentina. Click here to read full stories.
Apr 27 - China considers raising tariffs on sugar imports - sources
China is considering special import duties on sugar as part of an anti-dumping probe, according to two people familiar with the matter, in what would be a win for domestic producers seeking help battling cheap imports from Brazil and other major growers.China's Dairy Industry Association sent a document late last week to members asking them to comment on the Beijing proposal on duties, according to two people who reviewed it. They declined to be named since the document, addressed to some of the biggest industrial sugar users in China, wasnot public. Click here to read full stories.
Apr 27 - Cuban raw sugar output rises 20 pct but still below expectations
The Cuban sugar industry has entered the final few weeks of the milling season with output at 1.8 million tonnes of raw sugar, according to provincial media reports, around 20 percent above last year’s production but less than expected.AZCUBA, the state-run sugar monopoly, said when milling began that it hoped to increase output 30 percent over last year’s estimated production of just over 1.5 million tonnes of raw sugar. Click here to read full stories.
Apr 27 - Brazil's center-south cane crop seen falling to 585 mln T - Unica
Brazil's center-south, the world's largest sugar producing region, should process a smaller amount of cane in 2017/18 compared to the previous crop due to lower agricultural yields and smaller available cane area, industry group Unica said on Wednesday.Unica said in its first forecast for the new crop, which has just started, that center-south mills will crush 585 million tonnes of cane this season versus 607 million tonnes in the last crop. Click here to read full stories.
Apr 27 - Tocom Rubber Slips on Shanghai Weakness, Crude Oil Price Dip (Dow Jones)
Benchmark Tokyo rubber futures end lower Thursday amid a decline in Shanghai rubber futures and weaker crude oil prices. Investors started selling as soon as Shanghai rubber prices fell, notes Kaname Gokon, an analyst at Okato Shoji brokerage in Tokyo. A price drop in crude oil due to Russia's ambivalence on extending a production cap spilled over to rubber prices, he adds. The Tokyo Commodity Exchange rubber contract for new October delivery closed Y3.8 lower at Y215/kg.
Apr 26 - Robusta Coffee, Cocoa Prices Rally on Bargain-Hunting (Dow Jones)
The continuous price of robusta coffee rallies 1.75% to $1,917.00, although it's still down 10.67% over the last week. Wednesday's move comes after prices slumped to lows not seen since last September on Tuesday. Funds sold off based on perceptions of an oversupplied market, with Brazilian conilon looking solid and after Honduras delivered a bumper crop. The Vietnamese government -- which traders say is often wide-of-the-mark -- announced an 11% year-on-year in coffee exports for the year's first four months. This has had minimal impact on prices, though, ING's Warren Patterson says, instead attributing robusta's gains to a budding reversal in oversold prices. Mr. Patterson also said bargain-hunting was behind cocoa's London gains of 1.69% to GBP1442.00 a ton, and New York gains of 1.08% to $1,872.00 a ton down. This, after double-digit percentage drops for both commodities over recent months on fears of a global supply glut.
Apr 26 - Sugar prices may fall as EU seeks to regain market share
Sugar prices could see a "race to the bottom" as the European Union seeks to regain share later this year in an increasingly crowded export market, industry participants said on Tuesday.As the EU liberalises its sugar regime and boosts output from Oct. 1, the market is bracing for pricing pressure as EU producers compete for export markets, speakers said at the Kingsman EU Sugar Seminar in Geneva. Click here to read full stories.
Apr 26 - Ghana Cocobod needs $400 mln after loan disappears -CEO
Ghana's Cocobod needs around $400 million in bridge financing from the central bank to cover its operations for the remainder of the cocoa season after its annual syndicated loan ran out early, the industry regulator's chief executive said on Tuesday.Each September, Cocobod secures an international syndicated loan to finance licensed buyers who purchase cocoa from smallholders for export. It raised $1.8 billion for the 2016/17 season, but Cocobod's new chairman Hackman Owusu-Agyemang said in March the loan had been used up. Click here to read full stories.
Apr 26 - Some Brazil sugar mills liquidating positions in futures -sources
Some Brazilian sugar mills are pocketing profits after liquidating New York sugar futures contracts that they purchased last year to hedge parts of their sugar production during a peak in prices, two sources with knowledge of the deals told Reuters on Tuesday.Raw sugar futures fell from peaks close to 23 cents per pound late last year to around 16 cents per pound currently. The market expects global sugar production to recover, so funds have been liquidating long positions. Click here to read full stories.
Apr 26 - Brazil's Cooxupé sees coffee sales up 7 pct despite smaller crop
Cooxupé, the world's largest arabica coffee cooperative, expects to sell 7 percent more coffee this year, reaching 6.2 million 60-kg bags, in spite of a smaller-than-expected crop.Rising sales would stem from higher shipments from domestic growers struggling with a recent Federal Supreme Court ruling that upheld a levy on proceeds from sale of coffee and other grains, Cooxupé President Carlos Paulino da Costa said at an event on Tuesday. Click here to read full stories.
Apr 26 - Fruit producer Dole, led by 94-year-old CEO, files to go public
U.S. fruit and vegetable producer Dole Food Co Inc, led by 94-year old David Murdock, filed with regulators on Tuesday for an initial public offering, four years after it was taken private. The California-based company — once the world's largest producer of fruits and vegetables — was taken private by Murdock in 2013 in a $1.2 billion deal following a four-year run as a publicly-listed company. Click here to read full stories.
Apr 25 - Cocoa Prices Decline as Traders Remain Bearish (Dow Jones)
Cocoa prices continued to fall Monday, after a brief rally late last week, as traders remained bearish on the oversupplied market.
Cocoa for July dropped 1.8% to settle at $1,816 a ton on the ICE Futures U.S. exchange, as prices once again fell toward their 10-year lows hit on April 20. The contract jumped nearly 3% Friday after demand data out of North America and Asia showed signs of a slight recovery, but the rally once again proved to be short-lived.
Cocoa has been one of the worst-performing commodities so far in 2017, as the market is moving into a year in which supply of cocoa is expected to outstrip demand. The International Cocoa Organization estimated that production of cocoa will surpass demand in the 2016/2017 season that began in October by 264,000 tons, helped along by record production in Ivory Coast, the largest grower of cocoa in the world. The West African nation is set to produce 1.9 million tons, a 20% increase over last year. With demand up 2.9% and production up 15% globally, the organization (which represents cocoa producing and consuming countries) said the world is expected to have its first significant surplus in six years.
Latest data from the Commodity Futures Trading Commission showed that speculators in the cocoa market added to their short positions for the second straight week. Hedge funds and other money managers betting on lower prices for cocoa outweighed bullish traders by 32,771 contracts as of April 18.
However, following back-to-back years of weak demand brought on by price increases from chocolate makers, North America's craving for the main ingredient in chocolate showed signs of a modest recovery Thursday, as North American factories reported a bump to the number of cocoa beans processed in the first quarter. North American cocoa processors reported a 1.2% increase in beans processed during the first quarter of 2017 from a year earlier, the highest first-quarter tonnage since 2015. The 120,152 tons of cocoa beans processed by North American factories in the first quarter was also an increase over last quarter, when 117,588 tons of beans were processed.
The Cocoa Association of Asia reported grindings Thursday at 177,450 tons, a 19% increase over the same quarter last year but a drop from the preceding quarter, when processing reached 188,493 tons.
Apr 25 - Robusta Coffee Slumps Further as Funds Liquidate Longs (Dow Jones)
- Robusta coffee continues to haemorrhage value, with the continuous price dropping 1.31% to $1,881.00 a ton in London and extending its on-the-week drop to 13%. Robusta prices are at their lowest since September. Funds are liquidating their long positions as they become increasingly bearish on an over-supplied global market, a trader says.
- With Honduras recently signalling a bumper crop and Brazilian conilon regaining its strength, "we're sitting on so much coffee that this is hardly surprising," the trader adds, pointing out that while robusta is down 15.8% over the past six months, it's still 22.4% higher on-the-year. In light of this, he says prices may have much further to fall.
- Monday saw ICE data showing a 4.8% reduction in traders' long positions. "Right now, I don't know what it will take to stabilise prices," the trader said.
Apr 25 - Cocoa-producing countries must coordinate strategies - ICCO
The world's cocoa-growing countries must coordinate production strategies to confront a sharp drop in global prices that has hit farmers and government coffers hard, the chairman of the International Cocoa Organization (ICCO) said on Monday.Bumper crops around the world have sent cocoa futures tumbling by roughly a third since last year. Click here to read full stories.
Apr 25 - Most Brazil sugar mills still in delicate financial condition
A number of Brazilian sugar and ethanol firms still face tough financial conditions as heavy debt loads limit investments that could improve their returns, mills and consultants said on Monday.While large groups such as Raízen, Biosev and São Martinho could tap alternative sources of financing, most mid-sized firms took on more debt over the last few years and are struggling to crush more cane,the experts said during F.O. Licht's international sugar seminar in São Paulo. Click here to read full stories.
Apr 25 - Lower EU sugar imports tighten supplies ahead of liberalisation
EU sugar imports are running behind last season, a European Commission official said on Monday, with supplies expected to fall to their lowest level in six years before the bloc liberalises its regime in October.Applications for import licenses under the preferential Economic Partnership Agreements (EPA) and Everything But Arms (EBA) schemes stood at 766,000 tonnes as of April, Miguel Garcia Navarro, the Commission's head of sugar and olive oil said. Click here to read full stories.
Apr 24 - EU mulls special measures as sugar supplies dwindle
The European Commission plans to appeal to EU member states next week for special measures to prevent a short-term crunch in sugar supplies, just months before the bloc rolls out reforms that will sharply boost production.The proposal, which industry sources said is expected to be voted on at a management committee meeting on April 27, looks to reclassify some of the bloc's . Click here to read full stories.
Apr 24 - Speculators up bullish ICE sugar, cotton, coffee bets: CFTC
Speculators upped a bullish position in raw sugar on ICE Futures U.S. in the week to April 18 for the first time in eight weeks, as they also hiked a bearish bet in cocoa to a one-month high, U.S. government data showed on Friday.The dealers also raised net long stances in arabica coffee and cotton futures and options, U.S. Commodity Futures Trading Commission data showed. Click here to read full stories.
Apr 24 - Ghana to subsidise fertiliser for cocoa farmers and halt free supplies
Ghana's cocoa industry regulator will stop supplying free fertiliser to the country's cocoa farmers and instead subsidise the products in an effort to create a fairer market, a spokesman for Cocobod said on Friday.The policy change is one of a series the New Patriotic Party government that won power at an election in December could implement in an effort to liberalise the sector and boost production. Click here to read full stories.
Apr 24 - China's March sugar imports up 44 pct y/y - customs data
China imported 300,000 tonnes of sugar in March, up 43.9 percent from a year ago, and boosted first-quarter shipments, customs data showed on Sunday, as low global prices pushed up demand for overseas purchases from the world's top sweetener buyer.Producers also scrambled to buy ahead of the results of a government investigation into alleged anti-dumping into top exporting countries. China has extended the months-long probe until May 22. Click here to read full stories.
Apr 21 - Rubber Futures Maintain Bargain-Hunting Bounce (Dow Jones)
Tokyo rubber futures maintained their sharp early gains through the close amid a weaker yen and bargain-hunting. "The markets are back to normal after the April contract adjustment got over," says Kaname Gokon of Okato Shoji in Tokyo. Investors sold ahead of that contract's expiration, helping push futures of late to repeated 5-month lows. The Tokyo Commodity Exchange rubber contract for September delivery climbed 6.4% to Y216/kilogram.
Apr 21 - Weekly Pepper Bulletin, Week 17-21 April 2017 (WPB)
Pepper market at sources remained calm. Some activity has taken place in Viet Nam. Following significant quantity from current harvest has arrived in the market, pepper price in HCMC went down by 3% for black in local market and 2% for FOB price respectively. Limited activity is also taken place in India and Sri Lanka. At Kochi pepper price dropped marginally by 1%. In Sri Lanka a decrease of 4% was recorded. In Lampung and Bangka (Indonesia) and Sarawak (Malaysia) the markets were very quiet and price remained unchanged. The market in these countries is expected to improve in the next few months.
Apr 21 - Pepper's Import by Russia (WPB)
Russia is considered to be the most important markets for pepper in Eastern Europe. During 2016, Russia imported 7,700 Mt, consisting of 7,025 Mt of whole pepper and 675 Mt of ground pepper. As against imports of 6,760 Mt in the previous year, an increase of 940 Mt (14%) was recorded. Import of whole pepper increased by 970 Mt, while for ground pepper decreased by 30 Mt. Vietnam was the main source of pepper for Russia, supplying more than 75% of pepper imported into Russia followed by India and Sri Lanka which each supplied around 8%.
Apr 21 - Ivory Coast cocoa quality suffers as merchants blend beans
Cocoa exporters and grinders in top producer Ivory Coast are rejecting large volumes of beans because of poor quality as farmers seek to blend leftover main-crop cocoa into new mid-crop arrivals, exporters and merchants said on Thursday.A wave of defaults by exporters and higher than expected production left a glut of beans rotting in trucks at ports and in warehouses this year as farmers struggled to find buyers for what is the country's leading export product. Click here to read full stories.
Apr 21 - COFCO sees Brazil coffee crop 15 pct smaller; to jump in 2018
Brazil's coffee output this year should fall between 15 percent and 20 percent from the previous season, but production will make a strong recovery in 2018, the global head of coffee for Chinese commodities group COFCO told Reuters on Thursday.Joseph Reiner said COFCO's research team, after visiting several producing areas in the world's largest coffee producer, confirmed that most Brazilian farms will produce less due to the off-year in the biennial coffee cycle. Click here to read full stories.
Apr 21 - N. American first-quarter cocoa grind rises within expectations
North American cocoa grindings rose slightly in the first quarter of 2017, data from the National Confectioners Association (NCA) showed on Thursday, coming within market expectations.Cocoa processors in the United States, Canada and Mexico reported grinding 120,152 tonnes from January to March, up 1.15 percent from the first quarter of 2016, NCA data showed. Click here to read full stories.
Apr 20 - Sweet talk: sugar output seen jumping in key Indian producing state
Sugar output in Maharashtra, one of India's key producing states, will likely jump nearly 70 percent in 2017/18 to 7 million tonnes as ample rainfall drives farmers to plant more cane, an industry body told Reuters.That jump would help push the country's overall sugar production back near consumption levels after a drop expected in the current crop year, ending Sept. 30, in the wake of a strong El Nino weather pattern that prompted severe drought. Click here to read full stories.
Apr 19 - Nigerian Cocoa Prices Fall due to Low-Bean Quality (Traders)
Cocoa prices have fallen further in Nigeria due to the low quality of beans and the downward trend in international prices, industry officials and traders said Wednesday.
Midcrop cocoa beans remain small, with bean count of between 125 grams to 220 grams per 300 beans. Good-quality cocoa has a count of 300 grams per 300 beans.
Graded cocoa is selling at 650,000 Nigerian naira ($2,052) a metric ton in Cross River, the country's second-largest cocoa growing-state, down from NGN750,000 to NGN800,000 in March, said Godwin Ukwu, an official of the Cocoa Association of Nigeria. Graded cocoa is certified as fit for export by government inspectors.
Nojeem Olomide, a trader in southwest Ogun state, said cocoa there was selling at NGN480,000, down from NGN500,000 last week. However, the price rises to NGN550,000 when the cocoa is delivered to exporters in neighboring Lagos, because of extra charges on loading and off-loading and local government levies and taxes.
In southwest Ondo state, Nigeria's largest cocoa-producing state, cocoa was trading at NGN500,000, down from NGN650,000 in March, according to Fagite Adedara, manager at Affun-Adegbulu farm in Ondo town.
"Cocoa buying and selling are going on well, though prices have fallen," Mr. Adedara said.
In contrast, cocoa prices have risen to NGN550,000 in southeast Abia, up from NGN500,000 last week, according to Mazi Uche, a trader in Umuahia, the state's capital.
Elsewhere, traders said good rainfall and the approach of the rainy season in May should mean beans will be bigger next month and in June.
In Edo, cocoa was trading at NGN450,000, down from NGN500,000 last week, said a trader in Benin, the state's capital. He said that cocoa with bigger beans still commanded NGN500,000.
Apr 19 - Tokyo Rubber Prices Tumble on Heavy Selling, Shanghai Drop (Dow Jones)
Benchmark Tokyo rubber future prices end sharply lower Wednesday, hurt by heavy investor selling and a fall in Shanghai rubber futures. "Prices came under heavy pressure as investors resorted to heavy selling," says Kaname Gokon of Okato Shoji in Tokyo. The Tokyo Commodity Exchange rubber contract for September delivery ended Y9.9 lower at Y203 per kilogram.
Apr 19 - ICE May white sugar delivery totals 137,500 tonnes
ICE Futures Europe said on Tuesday 137,500 tonnes of white sugar had been tendered against the May contract that expired on Thursday, confirming earlier trade reports. All the sugar was bought by ED&F Man Capital Markets. Click here to read full stories.
Apr 19 - Brazil's govt sees center-south cane crop falling 2.4 pct
Brazil's agricultural statistics agency Conab projected on Tuesday that the country's center-south cane belt will produce 2.4 percent less in 2017/18 compared to the previous season, due mainly to a smaller planted area in the key Sao Paulo state.Conab said in its first view of the new crop that the center-south should produce 598 million tonnes of cane compared to 612 million tonnes in 2016/17. But it said sugar output will not fall as much, since mills are expected to continue to favor the sweetener over ethanol in their production mixes. Click here to read full stories.
Apr 18 - Tokyo Rubber Inches Lower on Position Adjustment (Dow Jones)
Benchmark Tokyo rubber-futures prices revert to losses to end lower Tuesday as traders sell before the start of the new contract on Wednesday. "Investors will make new position adjustments that will determine the price movements in the near term," says Kaname Gokon of Okato Shoji in Tokyo. The Tokyo Commodity Exchange rubber contract for September delivery ends down 3.6 yen (about 3 U.S. cents) at Y212.9/Kg ($1.95).
Apr 18 - U.S. green coffee stocks at highest in at least 16 years
U.S. green coffee stocks in March rose to their highest level since at least 2001 and climbed for the fourth straight month, data from the Green Coffee Association Inc (GCA) showed on Monday, as forecasts for another global deficit loom.The coffee stocks rose by 279,093 60-kg bags to 6.7 million bags by the end of March, the highest level seen on data going back to January 2002. Click here to read full stories.
Apr 18 - TOCOM urges early settlement of April rubber contract amid low stocks
Tokyo Commodity Exchange (TOCOM) has urged any investors with open positions in April rubber futures to settle contracts well before expiration on April 24, with exchange inventories sitting at a level low enough to pose a risk of sudden price swings.Natural rubber stocks at TOCOM-approved warehouses have slipped to their lowest in more than six years after Thai floods in January cut output and as higher prices in China lured supplies out of Japan. Click here to read full stories.
Apr 17 - Ghana cocoa regulator seeks central bank funds to cover shortfall - sources
Ghana's cocoa industry regulator is seeking central bank funds to finance the rest of the 2016/17 season after a $1.8 billion loan to purchase the crops ran out early, two sources close to the transaction told Reuters.The additional funds, which could amount to hundreds of millions of dollars, will come in the form of a loan or bonds and will enable Cocobod to purchase the smaller mid-crop that typically runs from July to September, the sources said. Click here to read full stories.
Apr 17 - Egypt imposes sugar export tariff of 3,000 pounds per tonne
Egypt will impose a sugar export tariff of 3,000 Egyptian pounds ($165.47) per tonne, the state's official gazette said on Thursday.Egypt expects to produce about 2.4 million tonnes of sugar from its harvest this year, less than the roughly 3 million tonnes it consumes each year, with the gap made up by a mix of private and public sector imports. Click here to read full stories.
Apr 17 - Tocom Rubber Ends Lower on Stronger Yen, Weakness in Shanghai (Dow Jones)
Benchmark Tokyo rubber futures edged lower after early gains, hurt by a stronger yen against the U.S. dollar. "Investors resorted to selling with the decline of the dollar," said Kaname Gokon of Okato Shoji in Tokyo. Weakness in Shanghai rubber futures also contributed to the fall in Tokyo. The Tokyo Commodity Exchange rubber contract for September delivery ended Y2.0 lower at Y216.50 a kilogram.
Apr 17 - Weekly Pepper Bulletin Week 03-07 April 2017 (WPB)
The market remained calm and prices were reported to have stable during the week under review, except local price of black pepper in Kuching, Malaysia. In Vietnam, the market was moving slowly, due to low overseas demand and on the other side low willingness of producers and collectors to sell at current low levels.
From Bangka it was reported the market was very quiet, since stock at farms and collectors has exhausted. It was very difficult to get row material in local market. Since low overseas demand however, white pepper price prevailed during the week in Bangka was unchanged at the level of IDR 110,000 per Kg locally. New material is only expected to be available in June/July.
Production of pepper from upcoming crop in Bangka is anticipated to be significantly lower from last year. It was observed that only few spike seen in each branch of pepper vine in Bangka and Belitung, the main white pepper growing areas in Indonesia. This was due to prolonged wet weather and too high rainfall during this crop season. This situation is also reported in Lampung and other areas in Indonesia.
Apr 14 - Cocoa Prices Lower Ahead of North American Grindings (Dow Jones)
Cocoa prices continue their descent, with the commodity's continuous price slipping 1.53% to $1,937.00 a metric ton after Wednesday's disappointing grindings data put out by the European Cocoa Association. Traders will be closely watching North America grindings data due out later in the day, and Asian grinding data due in the coming days.
The North American data is expected to be relatively strong, with Asia's figures also forecast to be decent thanks to strong recent chocolate sales, Price Futures Group's Jack Scoville says. This, after Barry Callebaut -- the world's largest cocoa processing company -- released 1H results Wednesday which showed impressive year-on-year growth in Asia, albeit against weak comparatives. With global demand weak and moderate weather in the key regions of Ivory Coast, Ghana, and South-East Asia, Mr. Scoville says "a test of recent lows is likely."
Apr 14 - Fresh 5-Month Low for Tokyo Rubber (Dow Jones)
Tokyo rubber futures opened down, hitting a fresh 5-month low of Y217.6/kilogram, after seeing some support yesterday. Fresh pressure today comes from ample supplies in the Shanghai market. However, trading will likely be lighter than normal with much of Asia out on holiday. The Tocom benchmark contract is down 2% at Y218.5.
Apr 13 - Egypt imposes sugar export tariff of 3,000 pounds per tonne
Egypt will impose a sugar export tariff of 3,000 Egyptian pounds ($165.47) per tonne, the state's official gazette said on Thursday. Egypt expects to produce about 2.4 million tonnes of sugar from its harvest this year, less than the roughly 3 million tonnes it consumes each year, with the gap made up by a mix of private and public sector imports. Click here to read full stories.
Apr 13 - Europe's coffee roasters hit by poor bean quality after Vietnam rains
Major European coffee buyers such as Nestle are struggling to obtain supplies of premium robusta beans after heavy rains in Vietnam last year wreaked havoc on the crop in the world's biggest producer. Coffee roasters with strict requirements about the quality of their robusta beans, a cheaper variety than arabica and used for instant coffee, are rejecting deliveries, traders said. Click here to read full stories.
Apr 13 - Brazil center-south sugar output rises to 270,000 T late in March
Brazil's center-south sugar output jumped to 270,000 tonnes in the second half of March from 73,000 tonnes in the previous fortnight as more mills started crushing in the world's largest cane producing region, industry group Unica said on Wednesday. Center-south mills crushed 7.96 million tonnes of cane late in March compared with 3.26 million tonnes in the first half of the month. Ethanol production reached 327 million liters in the period versus 161 million liters early in March, said Unica. Click here to read full stories.
Apr 13 - Ivory Coast, Ghana to work together to tackle cocoa price volatility
Ivory Coast and Ghana, the world's top cocoa producers, said on Wednesday they would deepen collaboration and coordinate their production strategies in order to tackle price volatility. The two countries, which together account for over 60 percent of the world's cocoa supply, have been hit hard this season by a sharp drop in world prices that have seen cocoa futures plummet by around a third since last summer. Click here to read full stories.
Apr 12 - Kenyan Arabica Coffee Prices Drop Further on Lower-Quality Beans (Dow Jones)
The average price of Kenyan arabica coffee slumped 22.8% at this week's auction, largely due to a decline in the quality of beans offered, the Nairobi Coffee Exchange said Wednesday. The average price across all grades was $137.77 for a 50-kilogram (110 pound) bag, compared with $178.38 at the previous auction.
"The prices came down due to the low quality beans on offer," Coffee Exchange Chief Executive Daniel Mbithi said. "This is because we are approaching the end of the main season and most if not all of the better qualities have already been sold."
At this week's auction, 24,714 50-kilogram bags were offered, up from 21,118 bags in the previous sale.
Apr 12 - Brazil, Indonesia Drive Global Coffee Deficit Expansion (Dow Jones)
Weaker than expected Brazilian production and an Indonesian production cut leads Rabobank to forecast a 5.3M bad production deficit for 2017-18, with arabica beans comprising 2.7M of those bags, and robusta the remaining 2.6M. "We are in the unusual situation of a stocks-to-use ratio heading to a very low level by the end of 1H 2018 but a futures market which will likely reflect a potentially monstrous Brazil arabica crop in July 2018," Rabobank says. If there is no frost in the Brazilian winter, futures pressures will come under even more pressure, the broker adds.
Apr 12 - Brazil green coffee exports fall to 2.36 mln bags in March - Cecafé
Brazil exported 2.36 million 60-kg bags of green coffee in March, well below the 2.77 million bags reported a year earlier despite a larger crop, exporter association Cecafé said on Tuesday. It is the second consecutive month of smaller green coffee shipments amid slow farmer selling. Brazil is also in the peak inter-crop period, as producers prepare to start harvesting in the next few weeks. Click here to read full stories.
Apr 12 - Ghana to start hand pollination of cocoa to try to boost output
Ghana plans to introduce hand pollination of cocoa seedlings and will begin irrigating farms as part of plans by the world's second largest grower to boost production to 1 million tonnes by 2020, the government said on Tuesday. The government is hiring around 5,000 people to pilot artificial pollination in some 30 districts this year and will also provide solar pumps to irrigate farms in the dry season, deputy agriculture minister William Agyapong Quaittoo said. Click here to read full stories.
Apr 11 - Cocoa Prices Stabilize in Nigeria at NGN500,000/Ton - Official, Traders
Cocoa prices have stabilized in Nigeria following a period of fluctuation in the market, an industry official and traders said Tuesday. Graded cocoa is trading in almost all producing states at 500,000 Nigerian naira ($1,590) per metric ton, but those states selling with higher grades are getting higher prices, said Tunde Adebanjo, a trader in Ibadan, capital of southwest Oyo state.
Mr. Adebanjo said the price stability can be explained because exporters who received contracts with different prices for cocoa have completed their contracts, cocoa bean sizes are unusually small and cocoa prices had fallen on the international market.
"The midcrop cocoa is now on sale and the bean size is very small because of the lack of rainfall between November and early March, which affected prices more than any other factor," he said.
Cocoa prices varied between NGN800,000 and NGN650,000 in the last two months but have since fallen to NGN500,000 in nearly all the producing states in the last two to three weeks.
In southwest Ogun state, cocoa is still trading at NGN500,000 but product with a bean count of 240 grams to 250 grams per 300 beans fetches an extra NGN50,000, said Titus Oguntunde.
In southeast Abia state, cocoa prices have remained at NGN500,000 for the past two weeks, according to Mazi Uche, an official of the Cocoa Association of Nigeria.
"There is stability in prices now, everybody can plan his purchases. But we may see cocoa selling at different and higher prices again if bean size improves with the current rains," said Dele Akinbobola, a trader.
Apr 11 - Cameroon Cocoa Price Falls on Abundance of Product, Small Beans (Dow Jones)
Cocoa prices fell more than 7% from last week at Cameroon's Port of Douala thanks to an abundant supply of small beans, traders and exporters said Tuesday. Cocoa ready for shipment sold for 1,119 Central African francs ($1.81) a kilogram, down from XAF1,209 last week, according to figures released Tuesday by the West African nation's cocoa board.
Beans being marketed numbered 180 per 100 grams, compared with 130/100g in December and January, exporters and traders said. Small beans are considered inferior in quality and command a lower price, with premium beans weighing at least 1 gram each.
Apr 11 - France sees sugar beet area up 16 pct at 468,000 hectares
French farmers are expected to increase their sowings of sugar beet by 16 percent this year as they prepare for the end of EU production quotas, France's farm ministry said on Monday. In its first estimate of 2017 sugar beet area, the ministry forecast farmers would sow 468,000 hectares of sugar beet compared with 403,000 hectares in 2016. Click here to read full stories.
Apr 11 - Heavy rains and dry weather threaten Ivory Coast bean quality
Heavy rains in Ivory Coast's western cocoa growing regions and persistent dry conditions in the east have raised concerns about bean quality for the April-to-September mid-crop, farmers said on Monday. The mid-crop marketing season in Ivory Coast, the world's top cocoa producer, opened on April 1 with a guaranteed farmgate price of 700 CFA francs ($1.14) per kilogram, which the government slashed by 36 percent last month. Click here to read full stories.
Apr 11 - Louis Dreyfus picks ex-Barry Callebaut chairman to join board
Global agricultural trader Louis Dreyfus Company has nominated Andreas Jacobs, the former chairman of chocolate maker Barry Callebaut, to join its supervisory board. The appointment, mentioned by Louis Dreyfus in an investor presentation posted on its website, is subject to approval at a shareholder meeting on Wednesday and is effective the following day. Click here to read full stories.
Apr 10 - Ghana to exceed 800,000 tonne cocoa target - Cocobod chief
Ghana is on track to exceed its revised 800,000-tonne target for cocoa production this season due to good rains this year, the chief executive of regulator Cocobod said on Friday. Cocoa purchases in Ghana, the world's second-largest cocoa grower, totalled 691,149 tonnes as of March 23, from the start of the 2016/17 season on Oct. 1, according to Cocobod data seen by Reuters. That represented a 4 percent rise on last season. Click here to read full stories.
Apr 07 - Tokyo Rubber Decline on Stronger Yen, Weaker Shanghai Futures (Dow Jones)
Tokyo rubber skids amid yen strength and weaker Shanghai futures. "The mood of investors is grim" in the wake of the US airstrikes in Syria, says Kaname Gokon of Okato Shoji in Tokyo. After the dollar rebounded versus the yen overnight, the Japanese currency rallied in a risk-off move after the attacks. Meanwhile, investors have been making "position adjustments" ahead of the US-China summit, he adds. The TOCOM rubber contract for September delivery fell 4.3% to Y237.9/kilogram.
Apr 07 - India Farmers Demand Rollback of Sugar Imports (Dow Jones)
India's decision to allow tax-free imports of raw sugar has been condemned by the country's cane farmers, who demand its immediate rollback. "Cheap imports would further push into despair severely distressed cane farmers," says the leader of a farmers group, Rakesh Tikait. He contends there's sufficient sugar supplies available in the country from previous seasons. India earlier this week announced plans to permit up to 500,000 metric tons of raw sugar to enter the country until June to make up for production shortfalls. Sugar output in India, the world's second-biggest producer after Brazil, is forecast to be about 22.5 million metric tons in the current sugar season--which runs through September. That would be down 10% from last season's output.
Apr 06 - India's Raw Sugar Import Move Won't Impact Local Prices (Dow Jones)
The Indian government's decision to allow tax-free imports of raw sugar won't likely unsettle local prices, the head of an industry body says. "As the amount of imports is not much against the total consumption, we do not think there will be any impact on domestic industry and retail prices. The prices will remain stable," said Prakash Naiknavre, managing director of the National Federation of Cooperative Sugar Factories Ltd. India on Wednesday announced plans to permit up to 500,000 metric tons of raw sugar imports tax free until June. The move comes after sugar output in India, the world's second-biggest producer after Brazil, is forecast to be about 22.5 million metric tons in the current sugar season -- which runs from October to September -- down from 25.1 million metric tons the previous season.
Apr 06 - Rubber Futures Fall Amid Stronger Yen (Dow Jones)
Benchmark Tokyo rubber futures dropped amid declines in Japanese equities and strengthening in the yen. The Nikkei fell to 4-month lows amid broader investory skittishness amid US policy direction, amid other things. The Tokyo Commodity Exchange rubber contract for September delivery fell 0.8% to Y248.7/kilogram.
Apr 06 - Brazil sells all coffee in auction, finishes government stocks
Brazil's crop supply agency Conab sold all 3,733 bags of arabica coffee from the government's supply in an auction on Wednesday, zeroing out public stocks for the first time in at least ten years.Conab said buyers paid a 5 percent premium on average for coffee beans as old as 15 years stored in government warehouses in Sao Paulo and Minas Gerais states. The average price was 424 reais ($155) per 60-kg bag. Click here to read full stories.
Apr 05 - India Coffee Exports Rise 6% as Brazil Output Falters (Dow Jones)
India's coffee exports have jumped 6% so far this year, thanks to growing appetite in international market as top-producer Brazil grows less coffee due to drought. Coffee exports from India rose 46,000 tons from January 1 till February 24, compared to 43,436 tons during the same period a year earlier, according to the Coffee Board of India. India has traditionally been a supplier of the arabica variety of coffee bean but growers have shifted to robusta in recent years due to rising global demand for the variety. Last year, arabica shipments from India grew nearly 18% to 51,648 tons from 43,785 tons in 2015. Robusta exports was up around 20% at 201,000 tons versus 167,000 tons in 2015.
Apr 05 - Brazil Coffee Exports Fell 15.5% in February Vs Year Earlier (Cecafe)
Brazilian coffee exports fell in February from a year earlier as sales abroad of the robusta variety plummeted, according to coffee exporters group Cecafe. The South American country exported 2.48 million 132-pound bags of coffee last month, a decline of 15.5% from the same month a year earlier, Cecafe said Thursday. A 19.6% increase in the average price of a bag meant the value of exports rose 1% to $438.9 million.
Sales abroad of the arabica variety of coffee fell 12.9% to 2.2 million bags, while exports of robusta beans dropped 86.3% to 9,620 bags. Exports of roasted, ground and instant coffee fell 20.7% in February to 250,370 bags, Cecafe said.
Apr 05 - Cameroon's Cocoa Price Rallies in Thin Crop Supply at Port (Traders)
Scarcity provoked by weak cocoa bean supply at Cameroon's chief port of Douala has pushed up prices paid for the crop this week, traders and exporters told Dow Jones Newswires on Wednesday.
A kilogram of free-on-board cocoa beans sold for 1,209 Central African francs ($1.96), up 2.19% from the XAF1,183 exporters paid for the crop last week, figures released today by the West African nation's National Cocoa and Coffee Board show.
Exporters and middlemen traders attributed the price rise to thin crop supply after a fire destroyed warehouses and goods at the port on Monday.
Most traders were delaying cocoa supply as they awaited the outcome of an investigation into the cause of the fire, which destroyed goods worth more than $4 million.
Apr 05 - Both Sugar Production and Consumption Set to Grow (Dow Jones)
Global sugar production and consumption will both increase this year, resulting in the market entering a second consecutive year of deficit in 2016-17, says Jose Orive, executive director of the International Sugar Organization, at an industry conference in Nairobi. While production is expected to rise 1.3% to 168.3 million tons, consumption is forecast to grow 1.6% to 174.2 million tons, he says. Meanwhile, a stronger currency in No. 1 grower Brazil could lift prices of the sweetener in the medium term as farmers hold onto their stocks, he adds. Raw sugar futures in New York are down 15% this year.
Apr 05 - Tocom Rubber Ends Higher on Gains in Oil, Shanghai Trading (Dow Jones)
Benchmark Tokyo rubber futures ended Wednesday's trading session sharply higher, on overnight gains in crude-oil futures. Bullish data on deflating oil glut has lifted the overall investor sentiment, traders say. Further, the Shanghai futures market opened higher after remaining closed the last 2 days that led to "buying among investors," notes Kaname Gokon of Okato Shoji brokerage in Tokyo. The Tokyo Commodity Exchange rubber contract for September delivery ends Y14.0 higher at Y250.7 per kilogram.
Apr 05 - Honduran coffee growers flag risk from new roya strain
A new outbreak of the destructive leaf fungus known as roya could damage the next Honduran coffee harvest if preventative measures are not taken against it quickly, leading national coffee industry associations said on Tuesday.Coffee growers recently detected the new roya strain in the IHCAFE-90 and Parainema seed varieties, which together with the Lempira were sown in 65 percent of the country to resist the fungus that has hit recent harvests, the industry said. Click here to read full stories.
Apr 03 - Cameroon's Arabica Coffee Prices Fall Amid Steady Rainfall (Dow Jones)
Arabica coffee prices fell 11% in Cameroon's twin growing localities following nearly three weeks of steady rainfall, farmers and traders said. A kilogram of arabica sold at the farmgates in Cameroon's northwest and west regions between 1,100 and 950 Central African francs ($1.78 - $1.54), down 11.82% from XAF1220 and XAF1, farmers and traders said. They attributed the price drop to abundant crop supplies at the farmgates following a streak of rainfall in provinces.
"With the consistency of rainfall after nearly four months of dry weather, we're confident that the next harvests would be buoyant. So, we're paying less for coffee," middleman trader Abraham Enjeh said.
Apr 03 - Nigeria Exporters Take Huge Losses on Falling Cocoa Prices (Dow Jones)
Several exporters in Nigeria have suffered heavy financial losses in the October 2016 to September 2017 season due to falling cocoa prices, industry officials and traders said Monday.
"We are already seeing huge monumental losses and this is the end of the season (of main cocoa)," said Sayina Riman, president of the Cocoa Association of Nigeria. "They have to wait until next season to see if they can recover."
Cocoa prices hit an all-time high of 1 million Nigerian naira ($3,262) to NGN1.2 million a metric ton in August following the depreciation of the naira against the dollar. Traders reported Monday that cocoa prices are down by more than 50% at NGN500,000 and could fall more in the next few weeks as midcrop cocoa that sells at lower prices than the main crop comes to the market.
Mr. Riman said "almost all exporters have stopped buying cocoa though there is still around 20,000 to 30,000 tons of the 2016-17 season's main cocoa waiting for buyers."
"Exporters are considering whether to sell or not to sell the cocoa they have. If they don't sell and prices go down further, their losses will be bigger." Mr. Sayina said. "We have impressed it on cocoa buyers and exporters to only purchase cocoa at prevailing prices and not speculate."
Apr 03 - Tokyo Rubber Futures Ends Flat (Dow Jones)
Benchmark Tokyo rubber futures end flat amid thin trading amid a holiday in China through Tuesday. Also, the yen has been little changed today versus the dollar as investors adopt a "cautious approach" about downside risks for the greenback, says Kaname Gokon of Okato Shoji in Tokyo. The Tokyo Commodity Exchange rubber contract for September delivery finished at Y245/kilogram.
Apr 03 - Speculators again cut bullish ICE raw sugar stance - CFTC
Speculators cut their bullish bet in raw sugar futures and options on ICE Futures U.S. for a fifth straight week in the week to March 28, as prices touched 10-month lows, U.S. Commodity Futures Trading Commission data showed on Friday.The dealers cut net long positions in cotton and coffee contracts, as they reduced a bearish stance in cocoa, the data showed. Click here to read full stories.
Apr 03 - Mexico increases sugar export quota to U.S. to 1.043 mln tns
Mexico's government said on Friday it had increased its sugar export quota to the United States during the current cycle to 1.043 million tonnes, from 870,689 tonnes previously, after Washington upped its projections for sweetener imports from its southern neighbor.Mexico is expected to ship 1.162 million tons (1.054 million tonnes) of sugar in the 2016/17 crop year that runs from October 2016 through end-September, the U.S. Department of Agriculture (USDA) said in a monthly forecast on March 9, hiking the outlook from a previous projection of 972,000 tons. Click here to read full stories.
Mar 31 - Cocoa Prices in Nigeria Fall to 2014 Levels (Dow Jones)
Cocoa prices in Nigeria, which rose to an all-time high last year following the depreciation of the country`s national currency, have fallen to the level they were three years ago, industry officials and traders said Thursday.
Graded cocoa is trading in southwest Ogun state at NGN500,000 ($1,628) per ton down from NGN700,000 two weeks ago, said Nojeem Olomide, a vice president of the Cocoa Association of Nigeria. In Edo state, the largest cocoa producer in the country`s midwest region and Abia in the southeast, cocoa is selling also at NGN500,000 from NGN700,000 last week, according to CAN officials.
Cocoa sold at between 1 million naira to NGN1.2 million last August because of the depreciation of the naira after the Nigerian central bank ended the currency`s peg at 197 to the U.S. dollar in June.
Prices in the domestic market have fallen sharply in the last few weeks because of naira appreciation as the central bank pumped more dollars to banks to ease the shortage of dollars in the country. The naira is trading in the parallel market Thursday at 370 to the dollar from around 480 to the dollar last month, said a currency dealer, while it is trading in the official interbank market at 307 to the dollar.
"Cocoa prices have fallen to the level we had in 2014," said Jide Akinsete, a trader in Ibadan, capital of southwest Oyo state. "The appreciation of the naira, poor quality cocoa beans on sale and the fall in global prices of the commodity are responsible for the fall,"
Cocoa prices stood at NGN500,000 in March 2014 but rose on the naira depreciation as well as a rise in world market cocoa prices to around $3,000 per ton.
Mar 31 - Cameroon's Cocoa Price Falls Amid Bountiful Supply At Port - Traders
An abundant cocoa bean supply has pushed down prices for the crop at Cameroon's Douala port, traders and exporters told Dow Jones Newswires Thursday. A kilogram of beans ready for export sold for 1,183 Central African francs ($1.92), down 3.66% from XFA1228, the price last week, according to figures from the country's National Cocoa and Coffee Board. The decline is due to a larger supply of beans, compounded by huge stockpiles, they said.
Mar 31 - Funds Go Longer on Robusta Coffee (Dow Jones)
Managed money hiked their net-long position on robusta coffee in the week to Tuesday, according to market data released on Monday by ICE. In that week, the net-long position rose by 2.7% to 38,766 lots. On the futures market, robusta prices rose by 1.1% in that period. On the New York-traded arabica coffee market, the net-long position rose 24% in that period, to 13,637 lots.
Mar 31 - Weekly Pepper Bulletin, Week 27-31 March 2017 (WPB)
The market showed a positive response during the week, where domestic price of pepper have increased at most origins. A significant increase was recorded in Sri Lanka by 16% from LKR 1,040 per Kg last week to LKR 1,220 per Kg this week. Tight stock is reported the main reason for the significant increase.
Pepper harvest in India is almost completed but output is not as good as estimated earlier. Unfavourable weather was the main factor affecting the situation. Some source reported that production of pepper in India is expected to be more compared to last year by only 5-10%. The increase is reported due to expansion and replanting of the crop occurred in the last few years. Because there have been insufficient rains during this crop season, the quality of pepper is affected to some extent.
Mar 31 - Pepper's Export and Import by China (WPB)
China is one of pepper producing countries, particularly in the southernmost province of Hainan, which produce around 30,000 Mt annually, mostly white pepper. Due to increased internal demand, China also imports significant quantity mainly from Viet Nam. Import of pepper into China increased, while for export has decreased.
Export of pepper from China decrease year by year from 10,100 Mt in 2006 to only 1,000 Mt in 2014 and 1,400 Mt in 2016. In the case of import, it has increased from 1,300 Mt in 2006 to 4,900 Mt in 2014 and 4,500 Mt in 2016. In the last five years China has become net importing countries, where volume of import has more than export. Malaysia and Indonesia were the main source of whole pepper for China; while ground pepper was imported mainly from India.
Some source reported that in addition of pepper imported from the above sources, China also entered by land a significant quantity of pepper from Viet Nam. However, no figures were recorded for this.
Mar 30 - Ivorian Government Slashes Cocoa Farmers' Price by 36%(Dow Jones)
The Ivory Coast has slashed the price it guarantees for its cocoa farmers by 36% to 700 CFA francs (1.14) per kilogram for the 2017 mid-crop, government spokesman Bruno Kone said Thursday, according to media reports.
This price cut will take effect at the beginning of the mid-crop, which runs April-September and comes after a sharp drop in global cocoa prices.
Having come close to $3,400 a metric ton at the end of 2015, cocoa prices have plunged in recent months, equalling six-year lows during March. This drop was partly due to bumper crops in several of the world's major producers.
The announcement lent some support to the price of cocoa, driving it 0.19% higher to $2,100.00 a metric ton.
The Ivorian farmers' price was previously fixed by the West African nation's government at 1,100 francs a kilogram. ($1 = 613.8500 CFA france)
Mar 30 - Ghana's $1.8 bln loan for 2016-17 cocoa "is all gone" - Cocobod
The $1.8 billion syndicated loan Ghana procured to purchase cocoa for the 2016-17 season "is all gone" and the country must seek more funding to make purchases for the rest of the season, the new chairman of industry regulator Cocobod said.Ghana is the world's second biggest producer of cocoa behind neighbouring Ivory Coast and the crop, whose season runs from October to September, is one of its top foreign exchange earners along with gold and oil. Click here to read full stories.
Mar 29 - Mexican, U.S. negotiators to resume sugar trade talks in Washington
Mexican and U.S. trade representatives will resume talks in Washington aimed at resolving a sugar dispute between the two neighbors, Mexico's top trade official said on Tuesday.The talks focus on the late 2014 sugar accord regulating Mexican access to the U.S. market and come as ties between the two countries have frayed under U.S. President Donald Trump, who has pledged to overhaul the North American Free Trade Agreement. Click here to read full stories.
Mar 29 - Indonesia lowers palm, cocoa export taxes for April
Indonesia will lower export taxes for crude palm oil (CPO) and cocoa exports in April as government reference prices for the commodities are seen falling below certain thresholds, the trade ministry said in a statement on Wednesday.The CPO tax will be set at $3 per tonne for April, down from $18 in March, while cocoa export tax will be set at zero from 5 percent per tonne previously, the ministry said. Click here to read full stories.
Mar 29 - Wilmar Sugar Mills May Have Escaped Major Damage (Dow Jones)
Wilmar's mills in Proserpine and Plane Creek in Queensland Australia don't seem to have sustained significant damage from Cyclone Debbie, says executive John Pratt. "Some infrastructure at the sites have sustained minor damage, but we are confident this will not impact our ability to have the factories ready for the start of crushing in June." He adds that as yet the company--one of the world's largest sugar traders--had been unable to inspect railway infrastructure used for bringing the cane to the mills due to flooding. "We are expecting some damage from fast-flowing water, but this is unlikely to affect our crushing operations." As for potential crop losses, it's too early to assess.
Mar 29 - Hundreds Of Hectares Of Australia Sugarcane Hit (Dow Jones)
Hundreds of hectares of Australia's sugarcane has been fatten by Cyclone Debbie's winds, with the Mackay and Proserpine districts worst affected, says Dan Galligan, CEO of farm body Canegrowers. "Some of the cane will have been snapped or pulled up by the roots and some of it is underwater. The full extent of the damage to farms and the crop won't be clear for a number of days." The area affected produced around 25% of the total typical output in Australia's largest sugar-growing state, Queensland. Heavy rains are now falling in districts around Bunderberg and expected to cause flooding, adds Canegrowers.
Mar 29 - Tocom Ends Higher on Weaker Yen (Dow Jones)
Benchmark Tokyo rubber future prices end higher Wednesday supported by a weaker yen against the US dollar. "The dollar's rise supported the price of rubber in Tokyo," says Kaname Gokon of Okato Shoji brokerage in Tokyo. Besides, the rise in Shanghai supported rubber prices, he adds. The Tokyo Commodity Exchange rubber contract for September delivery ends Y5.8 higher at Y244/kg.
Mar 28 - Rubber Rises Along With Oil, Stocks (Dow Jones)
Benchmark Tokyo rubber futures recover from early declines to end higher amid gains in oil and Japan stocks. "Investors took to buying, lifting the overall mood of the market," says Kaname Gokon of Okato Shoji in Tokyo. The Tokyo Commodity Exchange rubber contract for September delivery rose at Y238.2/kg.
Mar 28 - Australia Sugar Crops Unlikely to Wear Worst of Cyclone (Dow Jones)
The powerful storm due to hit Australia will likely miss most of the country's sugar crops as it is expected to track north of the country's largest growing region, says Tobin Gorey, an analyst at Commonwealth Bank of Australia. However, "we never know with these storms. As we saw with Hurricane Katrina in the Gulf these things can just take a right turn at times and go the wrong way." He notes that it will more be a question of the storm damage to the cane now rather than any interruption to the crush, which is still another two months away.
Mar 28 - EU farmers rush to plant sugar, free to seek exports as quotas end
EU farmers are ramping up production of sugar beet this year when they will be freed at last to grow as much as they want and sell it globally, after a decade of strict output quotas and export limits.Farmers have started drilling the first post-quota crop this month in several EU member states, including top EU producer France where planting is expected to increase by 20 percent, in line with an expected rise across the bloc. Click here to read full stories.
Mar 28 - Strauss Coffee buys back shares from TPG for 257 mln euros
Strauss Coffee has agreed to buy back a 25.1 percent stake in the company held by buyout firm TPG Capital Management for 257 million euros ($279 million), its parent company Strauss Group said on Tuesday.The deal will contribute to earnings per share, said Israel-based Strauss Group, which owns the rest of Strauss Coffee. It did not provide details. Strauss paid TPG 172 million euros on Monday and will pay the remaining 85 million by Aug. 15. Click here to read full stories.
Mar 27 - Funds Bet on Cocoa Prices Falling More (Dow Jones)
Funds raised their bets on London-traded cocoa prices sinking further in the week to March 21, according to market data released on Monday by ICE. In that week, the net-short position expanded by 1.9% to 16,223 lots. On the futures market, the continuous cocoa price rose by 1.5% in that week. In the same period, the net-short position on New York-traded cocoa shrunk by 21% to 30,781 lots.
Mar 27 - Cocoa Prices Fall in Nigeria on Poor Bean Quality (Officials, Traders)
Cocoa prices in Nigeria have fallen following trades in poor quality midcrop beans, industry officials and traders said Monday.
"Cocoa quality is poor, the bean weight (of the midcrop) is very bad due to late and insufficient rainfall," said Vincent Ohwojakpor, a vice president of the Cocoa Association of Nigeria.
Traders in the southwest cocoa region said the weight of the midcrop was generally low at 218 grams to 240 grams per 300 beans. Good quality main cocoa weighs 300 grams per 300 beans.
While cocoa prices remained unchanged in the southeastern states of Abia and Cross River in a range of NGN700,000 to NGN800,000, other states have seen a fall. In southwest Ekiti, graded cocoa was selling at 650,000 naira ($2,117) a metric ton, down from NGN900,000 last month, according to a state industry official. In Edo in the midwest, it was trading at NGN600,000 down from NGN700,000 last week and in the southwest states of Ondo and Osun it was at NGN700,000 down from NGN800,000, according to state officials.
Graded cocoa has been certified as fit for export by government produce inspectors. Midcrop beans are smaller than those of the main crop which are harvested from September to January or February.
Mar 27 - Cameroon Cocoa Prices Rally As Crop Supplies Ebb (Dow Jones)
Cocoa beans prices in Cameroon's second-largest growing area rose more than 7% on week, reversing months of plunging prices weighed by bountiful harvests, farmers and traders said Monday.
Traders in the Central Cameroon region paid between 800-860 Central African francs ($1.42-$1.32) a kilogram this week, a rise of about 7% on last week. The current price rise has been mainly due to the harvest season drawing to an end, according to some traders, who added price rises on the world markets recently have buoyed local markets.
Ample sunshine and light rainfall since November has shored up the third-largest African cocoa producer's harvests, when main crop cocoa harvests entered full gear.
Central Cameroon, which officially accounted for nearly 40% of the West African nation's yearly cocoa output, saw prices nearly double in February before when dry weather led to fears of a poor harvest.
Mar 27 - Cameroon Cocoa Prices Higher on Stronger Nigerian Demand (Dow Jones)
Nigerian demand for Cameroonian cocoa shored up prices paid for the crop in South-West Cameroon this week, farmers and traders said Sunday.
Cross-border buyers were offering 1,260 and 1,195 Central African francs ($2.07-$1.96) per kilogram of cocoa beans sold in this third-largest African nation's leading cocoa province, up 2.07% from XAF1,215 and XF1,190 they had paid for the crop last week.
It is nearly seven weeks that prices paid for cocoa beans have risen in the Manyu division, the Cameroonian locality bordering eastern Nigeria.
Soaring prices in Manyu leaves big gaps for cocoa sold in other parts of southwestern Cameroon, where ample stocks have led to lower farmgates prices.
This week, a kilogram of cocoa beans was being sold for XAF700 and XAF705 in and around the main growing town of Kumba, according to farmers and traders.
Favorable weather has continued to improve output during this period of main crop harvests, they said.
Mar 27 - Tocom Ends Weaker on Lower Oil, Strong Yen (Dow Jones)
Benchmark Tokyo rubber futures end sharply lower on Monday as the market came under pressure from a fall in oil prices and a stronger yen against the dollar. Crude prices were lower, weighed by rising US oil output, while the dollar dropped nearly 1% against the yen, hitting fresh four-month lows. "This lowered rubber prices in Tokyo," notes Kaname Gokon of Okato Shoji brokerage in Tokyo. The Tokyo Commodity Exchange rubber contract for August delivery closed down Y9.9 at Y237.5/Kg.
Mar 27 - Speculators cut bullish ICE raw sugar stance to over 1-yr low - CFTC
Speculators reduced a bullish position in raw sugar to an over one-year low on ICE Futures U.S. in the week to March 21, as they also reduced a bullish stance in cotton futures and options, U.S. government data showed on Friday.The dealers raised their net long position in arabica coffee, while they reduced their net short position in cocoa, the Commodity Futures Trading Commission data showed. Click here to read full stories.
Mar 24 - Weekly Pepper Bulletin Week, 20-24 March 2017 (WPB)
- Except in India, average price of black pepper in Domestic market of the most origins has increased up to 7% during the week. Although Viet Nam is now in the peak of its harvesting season, the market however is not brisk. Producers are not interested to release their material as low level as received last week. This week, average price has shown an improvement. Domestic price of black pepper in HCMC increased from VND 100,000 per Kg last week to VND 107,000 per Kg this week.
- In Lampung the prices of black pepper has increased marginally, but trading activity was very quiet in view of very limited material arrived in the market. Upcoming harvest which is expected to begin in July/August is anticipated to be not promising. Too many rains occurred during this year season is not favourable for flowering and fruiting. In addition to the above, wind storm has also braved pepper garden in a large scale at main growing areas in East Lampung. Under this situation, a significant decrease of pepper output from this year harvest in Lampung is anticipated.
- In the case of white pepper, the price in Bangka and Vietnam increased, but in Sarawak and China decreased locally.
Mar 24 - Pepper's Export from Malaysia (WPB)
During 2016, export of pepper from Malaysia was 12,550 Mt, consisting of 10,950 Mt of whole pepper and 1,600 Mt of ground pepper. As against 13,910 Mt of export in 2015, there was a decrease of 10%. Whole pepper decreased by 1,775 Mt (14%), while for ground pepper however increased by 415 Mt (35%). In terms of value, export earnings of Malaysia from pepper decreased by 11% from US$ 133 million in 2015 to US$ 119 million in 2016. Japan remained the most important market absorbing 25% of pepper exported by Malaysia. China, Viet Nam and Taiwan also imported significant quantity of pepper from Malaysia.
Mar 23 - Brazil robusta coffee auction fails to close deals - industry
A reverse auction on Wednesday that aimed to attract eventual suppliers of robusta coffee in Brazil failed to close any deals, according to the official agency providing the auction's platform and the country's instant coffee industry. Brazil's instant coffee producers association (Abics) said suppliers did not show interest in the bids presented by processors at the auction, which had the aim of negotiating up to 213,500 bags of coffee to help relieve a tight market. Click here to read full stories.
Mar 23 - Ivory Coast says has used "a large part" of cocoa stabilisation funds
Ivory Coast has expended "a large part" of its stabilisation funds in order to maintain cocoa farmers' prices for the current main crop, amid a sharp drop in world prices, the government's spokesman said on Wednesday. After years of steadily rising prices, cocoa futures have plunged since last September, falling to near 10-year lows earlier this month and forcing the Coffee and Cocoa Council (CCC) marketing board to intervene. Click here to read full stories.
Mar 22 - Uganda Robusta Earnings Double as Exports Extend Gains (Dow Jones)
The value of Uganda's robusta exports doubles as export volumes extended their rising streak into the fourth month, says state coffee regulator, UCDA. Robusta export earnings doubled to $35 million in February, from a year earlier, boosted by improved prices and higher export volumes, UCDA states. More newly planted coffee trees are coming of age, boosting harvests across Africa's top grower of the bitter tasting variety. It's a boost for Uganda, which is striving to fill a global robusta supply void, amid concerns over supplies from producers in Asia and South America. Uganda's robusta shipments in the first five months of 2016-17 season are 31% up on year to 1 million bags.
Mar 22 - Tokyo Natural Rubber Falls on Bearish Market Sentiment (Dow Jones)
The Tocom benchmark natural rubber contract closed the day session at its lowest level since December 27 as general bearish sentiment and a fall in oil prices weighed on the commodity. Not helping is an around 0.2% fall in the USD/JPY, which makes the yen-denominated commodity nominally more expensive. The Tocom benchmark contract closed down Y14/kg at Y14.0kg.
Mar 22 - Supply glut risk as cocoa expansion plans backfire
West Africa's push to increase cocoa production risks backfiring as a global glut leaves farmers desperate to find buyers while their products perish. A potentially record global cocoa surplus in the current season could be made worse with some traders and analysts saying production may again outstrip demand in 2017/18 (October/September). "All the signs are that there could be another bumper crop. Click here to read full stories.
Mar 22 - Brazil sugar mills hedged 52.4 percent of 2017/18 exports -Archer
Brazilian sugar mills have sold forward through futures contracts in New York 52.4 percent of the exportable volume projected for the 2017/18 center-south crop, Sao Paulo-based Archer Consulting said on Tuesday. The amount of sugar hedged is estimated at 13.87 million tonnes, said the consultancy in a report, adding that the average price on those derivatives was 17.71 cents per pound. Click here to read full stories.
Mar 22 - Algeria's Cevital plans $350 mln Ethiopian oilseeds, sugar processing complex
Algeria's largest private firm, Cevital, is looking for banks to back its plans for a sugar refinery and oilseeds processing complex in Ethiopia, Cevital's chairman Issad Rebrab told Reuters on the sidelines of the Africa CEO Forum in Geneva. "All in all, the figure will be about $360 million in total, but that's just in Ethiopia, without counting the logistics platform at the port in Djibouti," Rebrab said. Click here to read full stories.
Mar 22 - Rubber Sharply Lower Amid Trump Worries (Dow Jones)
Rubber futures slump in both Shanghai and Tokyo amid the broad risk-off trade which developed overnight as aspects of the Trump Trade unwind some. But Gu Jiong, an analyst at Yutaka Shoji, notes as rubber's market is smaller than others, moves are often exacerbated. The Tocom benchmark natural rubber contract is down 4.8% at Y250.3/kilogram; Gu says support stand around Y$245.
Mar 21 - Ivory Coast Cocoa Price Drop Poses Problem for Ghana (Dow Jones)
The Ivorian Coffee and Cocoa Council says it will lower its guaranteed farmers price for this year's mid-crop, which runs April to September. This may pose a dilemma for the recently-inaugurated government of neighboring Ghana. The new Ghanaian government recently announced that it did not intend to cut prices, although the two countries'porous border means smuggling could be a problem. It's possible Ghana's forward sales are currently stronger than the Ivory Coast's, says a trader, who caveats this by saying one can only assume the Ghanaian Cedi will slip in the coming weeks. The Ghanaian government--which ran on a pro-farmer platform--has a choice between U-turning on earlier remarks and putting troops on its Ivorian border, he adds.
Mar 21 - Hot, dry weather in Ivory Coast stokes concerns for cocoa mid-crop
Dry, hot weather last week in several regions of Ivory Coast's cocoa regions could threaten the approaching mid-crop although good conditions were reported elsewhere in the world's top producer, farmers said on Monday. The dry season runs from mid-November to March, during which downpours are scarce and the weather can be very hot. But farmers worry that it is continuing deep into the season and might spill into April, raising the risk of damage. Click here to read full stories.
Mar 20 - Brazil weighs request to tax ethanol imports, says ministry
The Brazilian government is evaluating a request by the country's sugar and ethanol industry to reinstate a 20 percent import tax on ethanol, the Agriculture Ministry said on Friday. Some ethanol producers in the Northeast region in Brazil complained to Agriculture Minister Blairo Maggi about rising imports of ethanol from the United States. Click here to read full stories.
Mar 20 - Speculators cut bullish ICE sugar stance to 1-year low
Speculators cut their bullish position in raw sugar contracts on ICE Futures U.S. to the smallest in one year, as prices extended losses to 2017 lows in the week to March 14, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday. The dealers cut their net short position in cocoa futures and options for the first time in eight weeks, taking it off their biggest bearish stance on record, while they reduced their net long positions in arabica coffee and cotton, the data showed. Click here to read full stories.
Mar 20 - Couple quits finance, wins Brazil's top coffee prize
It could be a Hollywood screenplay. Juliana Armelin and her husband Paulo Siqueira decided to radically change their lives in 2010, quitting jobs in Sao Paulo's financial sector and moving to a farm 7 hours away to start growing coffee. Seven years later, they clinched for a second consecutive year Brazil's most prestigious coffee award, beating hundreds of established producers in a country that has exported coffee for more than 200 years. Click here to read full stories.
Mar 17 - Nigerian Cocoa Prices Fall on Currency Appreciation, Midcrop Quality (Dow Jones)
- Cocoa prices in Nigeria fell further on smaller midcrop beans and appreciation of the Nigerian naira, traders said Friday.
- Graded cocoa was trading in southwest Ondo state at 800,000 Nigerian naira ($2,607) per metric ton, down from NGN 900,000 to NGN 950,000 last month, a trader there said.
- He attributed the lower prices to appreciation of the naira against the U.S. dollar at the parallel market and trading in midcrop, which commands lower prices than the main crop.
- Trading resumed in Cross River state--where there was too little business to quote prices in the past three weeks as exporters had stopped buying--cocoa was selling at NGN 700,000 to NGN 750,000, said Godwin Ukwu, an official with the Cocoa Association of Nigeria. Prices there were around NGN 965,000 last month, a trader said.
- A currency trader in Ibadan, the Oyo state capital, said the naira appreciated in the parallel market to 445 to the dollar on Friday from 450 to the dollar the previous day.
- Cocoa prices in Nigeria rose to NGN 1 million to NGN 1.2 million in August because of the naira depreciation after the Nigerian central bank ended the currency's peg to the U.S. dollar in June.
Mar 17 - Cameroon Cocoa Prices Rise in Manyu on Nigerian Demand (Dow Jones)
Nigerian demand for Cameroonian cocoa further raised prices paid for the crop in the Manyu division is South-West Cameroon this week, farmers and traders said Tuesday.
- Transborder traders paid 1,215 and 1,190 ($1.96-$1.92) Central African francs per kilogram of cocoa beans sold in this third-largest African nation's leading cocoa province, up from XAF1,020 and XF1,195 last week.
- It is the second straight month that prices paid for cocoa beans have risen in the Manyu division, the Cameroonian locality close to Nigeria. Soaring prices in Manyu leaves big gaps for cocoa sold in other parts of southwestern Cameroon, where ample stocks have led to lower farmgates prices.
- This week, a kilogram of cocoa beans was being sold for XAF670 and XAF705 in and around the main growing town of Kumba, according to farmers and traders. Favorable weather has continued to improve output during this period of main crop harvests, they said.
Mar 17 - Mexico demands reciprocity in sweetener trade with U.S. - minister
Mexico demands reciprocity in its refined sugar-for-fructose trade with the United States and it is unfair to "punish" its sugar industry, the agriculture minister said on Thursday, at a time of tensions over the pace of Mexican sugar shipments north. Agriculture Minister Jose Calzada stopped short of echoing industry threats to sanction fructose imports if the spat over the U.S.-Mexican sweetener trade was not resolved, but said the government would examine what steps to take if the trade was not reciprocal. Click here to read full stories.
Mar 17 - Weekly Pepper Bulletin, Week 13-17 March 2017 (WPB)
- The market showed a mixed response during the week. In Viet Nam the price has moved up after continuous decrease, following increased arrival of new material from current harvest. Local price of black pepper in HCMC increased almost daily from VND 98,500 per Kg at the beginning of the week to VND 103,500 per Kg at the week's close. Local price of white pepper also increased, by VND 5,000 to VND 142,500 per Kg.
- In India the harvest is almost completed. Material from current harvest is easily absorbed internally. Price in Kochi was reported to have been relatively stable. Supported by strengthened of Indian Rupees against US dollar, average pepper price in dollar terms has increased by 2%. In Lampung and Bangka, the market was very quiet. Very limited activity was reported, since material at farm from last year crop season has been exhausted. Due to limited overseas demand however, the price has decreased further. In Sarawak and Sri Lanka, local price of pepper in these sources also decreased.
Mar 17 - Pepper's Import by the Netherlands (WPB)
- The Netherlands, the most important pepper trading countries in Europe imported 13,600 Mt of pepper in 2015, comprising of 8,600 Mt of whole and 5,000 Mt of ground pepper, mainly from Viet Nam. Out of the total import a volume of 10,100 Mt (6,000 Mt of whole and 4,100 Mt of ground pepper) was re-exported to neighboring countries like Germany, Poland, Austria, France and the United Kingdom, leaving 3,500 Mt as net import. In 2016, import and re-export of pepper by the Netherland showed a decreasing trend as indicated by import and export performance during the first 11 months of 2016. During January â€“ November 2016 import of pepper into the Netherlands decreased by 900 Mt (7%) and for re-export decreased by 1,150 Mt (12%) to 11,650 Mt and 8,320 Mt respectively. Viet Nam has been remained the main source of pepper into the Netherlands supplying up to 45% of imported pepper during January-November 2015. Contribution share of Viet Nam as main supplier decreased in 2016 from 60% in 2015 to 45% in 2016. Other important source of pepper for the Netherlands is Indonesia.
Mar 16 - World cocoa sector could be in surplus for years - ICCO
The world's cocoa sector may be facing a structural surplus that risks depressing global prices and dealing a blow to producer country and farm revenues in the coming years, a senior official with International Cocoa Organization (ICCO) said on Wednesday. After rising steadily for several years, cocoa futures have tumbled since September with New York cocoa falling to its lowest level in nearly a decade earlier this month on the back of bumper crops around the world. Click here to read full stories.
Mar 16 - Brazil to organize auction for roasters to buy local robusta coffee
Brazil's food supply agency Conab on Wednesday said it will organize an auction to allow coffee processors to bid for locally produced robusta beans, as the government tries to help roasters and instant coffee producers find supplies of the bean. Normally, Conab holds auctions of government-held coffee stocks when supplies are scarce but on this occasion the food supply agency said the electronic auction next week is for third-party stocks of coffee. Click here to read full stories.
Mar 16 - EU chemical agency says weed killer glyphosate not carcinogenic
Glyphosate, the key ingredient in Monsanto Co's Roundup herbicide, should not be classified as a substance causing cancer, the European Chemical Agency concluded on Wednesday, potentially paving the way for its licence renewal in the EU. A transatlantic row over possible risks to human health has prompted investigations by congressional committees in the United States, and in Europe has forced a delay to a re-licensing decision for Monsanto's big-selling Roundup weed killer. Click here to read full stories.
Mar 16 - Ivory Coast cocoa grinders reject beans due to high acidity
Cocoa grinding companies in Ivory Coast said they are rejecting between 30 and 50 percent of beans because of high acidity levels, which along with other quality problems is likely to cause a sharp drop in port arrivals next week. Weekly cocoa port arrivals in the world's top grower are expected to fall by half to around 20,000 tonnes starting next week due to problems including small bean size, high acidity and mould, exporters said. Click here to read full stories.
Mar 15 - India has no plans to cut sugar import tax for now -minister
India has no plans to cut the sugar import tax for now, the food minister said on Tuesday, citing ample domestic stocks and criticising the Indian Sugar Mills Association (ISMA) for projecting output forecasts below the government estimate.Mills in India, the world's biggest sugar producer, will churn out 20.3 million tonnes of the sweetener in the season to September 2017, the ISMA said last week, down 5 percent from its previous forecast and 13.2 percent lower than the estimate made in September 2016. Click here to read full stories.
Mar 15 - Poor cocoa quality in Ivory Coast seen cutting arrivals by half
Cocoa exporters in top producer Ivory Coast expect port arrivals to fall by half to around 20,000 tonnes per week from next week, and to remain at that low level until May or June owing to poor bean quality, they said on Tuesday. Cocoa arrivals this season so far are up nearly 7 percent since last season, with at least 40,000 tonnes being delivered weekly to Ivory Coast's two ports of Abidjan and San Pedro since February. Click here to read full stories.
Mar 15 - Sucden sees small global sugar surplus in 2017/18
A small global sugar surplus is forecast for the 2017/18 season although weather risks including a potential El Nino mean it may not materialise, Paris-based commodity trade house Sucres and Denrees (Sucden) said in a quarterly report on Tuesday. Sucden said the sugar market could switch to a surplus of one to two million tonnes, raw value, in 2017/18 (October to September) following deficits in the 2015/16 and 2016/17 seasons. Click here to read full stories.
Mar 15 - Madagascar vanilla producers say cyclone damaged 30 pct of crop
Vanilla producers on the tropical island of Madagascar say a cyclone that killed 78 people has also damaged around 30 percent of the crop in the world's biggest producer. The valuable beans are often kept under armed guard after prices shot up from around $20 a kg in 2010 to around $500 a kg last year. Click here to read full stories.
Mar 14 - Mexico sugar group threatens to block US fructose in trade spat
Mexico would seek to block U.S. high-fructose corn syrup from entering Mexico if the United States imposes any tariffs on Mexican sugar, the head of Mexico's sugar industry association said on Monday. Mexico was willing to negotiate with the United States to get a mutually beneficial deal, Juan Cortina, Mexico's sugar chamber president, said at an event in Mexico City. Click here to read full stories.
Mar 14 - Tereos to expand cane crush, sugar capacity at Brazil plant
French sugar producer Tereos SA plans to invest 60 million reais ($19 million) to expand cane crush and sugar production capacity at its Tanabi plant in Brazil, the firm said over the weekend when it opened a new sugar storage facility in the region. Tereos, one of the largest players in the Brazilian sugar sector with seven mills, said the new warehouse in Tanabi, Sao Paulo state, is capable of storing 80,000 tonnes of VHP (very high polarization) sugar. Click here to read full stories.
Mar 14 - Ivory Coast scattered rain helps cocoa amid heat
Scattered rain in most of Ivory Coast's main cocoa growing regions will help the April-to-September cocoa mid-crop though hot weather in other areas threatened to hurt the harvest, farmers said on Monday. The dry season in the world's top cocoa producer runs from mid-November to March, during which downpours are scarce with February and March normally the hottest months. Click here to read full stories.
Mar 13 - U.S., Mexico launch new round of negotiations on sugar trade
The United States and Mexico will launch a new round of negotiations to resolve a years-long trade dispute over Mexico's sugar exports to the United States, senior officials in both governments said on Friday. U.S. Commerce Secretary Wilbur Ross and Mexican Economy Minister Ildefonso Guajardo said the talks would be aimed at resuming imports of Mexican sugar to the United States after they had been halted earlier this week as Mexico reached a temporary limit on sugar exports to its northern neighbor. Click here to read full stories.
Mar 13 - Vietnam's 2017 coffee exports volume seen falling 20-30 pct y/y
Vietnam's coffee export volume this year is expected to fall 20 to 30 percent from a year earlier due to drought and reduced inventory, an industry official said on Sunday. Vietnam, suffered from the worst drought in 30 years last year, while unexpectedly long rainfall in December 2016 may also affect bean quality and output this year, said Luong Van Tu, head of the Vietnam Coffee and Cocoa Association. Click here to read full stories.
Mar 10 - Tokyo Rubber Gains Amid Weaker Yen (Dow Jones)
- Tokyo rubber futures rose amid higher Japan stock prices and a weaker yen. The Tokyo Commodity Exchange rubber contract for August delivery finished up 1.8% at Y261.7/kilogram.
- Benchmark Tokyo rubber futures start higher, led by investor ease about falling supplies of natural rubber. But analysts say the rise might be "short-lived" as worries about waning demand in top buyer China will continue. The Tokyo Commodity Exchange rubber contract for August delivery is up 1.1% at Y259.7/kilogram.
Mar 10 - Mexican ship loaded with sugar stranded after U.S. export spat
A ship loaded with sugar was stranded in port on the east coast of Mexico because of the break down in stop-gap measures designed to ease a long-standing trade dispute with the United States over sugar exports. The vessel, carrying between 20,000 and 30,000 tonnes of raw sugar, is stuck in a port in the eastern Mexican state of Quintana Roo after Mexico canceled permits to export sugar to the U.S., Mexican sugar chamber head Juan Cortina said on Thursday. Click here to read full stories.
Mar 10 - Weekly Pepper's Bulletin, Week 6-10 March 2017 (WPB)
- The market has declined further, particularly in Vietnam, which is now in the peak of harvesting season. In addition to the increased arrivals of new material from current harvest, limited overseas demand has also contribute to the declining trend. As the largest producing and exporting countries, market development in Vietnam somewhat influences market direction in other countries as well.
- In local market, domestic price of black pepper in HCMC decreased to VND 98,500 per Kg from VND 112,500 per Kg last week. In the case of white pepper has decreased by VND 15,000 per Kg to VND 137,500 per Kg at the weekâ€™s close. On an average, local price of pepper in HCMC decreased by 11% for black and 8% for white pepper.
Mar 10 - Pepper's Import by Germany (WPB)
- In 2015 Germany imported 29,200 Mt comprising of 26,400 Mt of whole and 2,800 Mt of ground pepper, an increase of 13% from 26,000 Mt in 2014. Brazil was the main supplier for Germany followed by Vietnam and Indonesia. Netherlands the trading countries in Europe also supplied significant quantity of whole and ground pepper to Germany.
- In 2016 import of pepper into Germany is estimated to have experienced a marginal decrease to 28,500 Mt from 29,200 Mt in 2015. This was likely due to reduction of pepper supplied from Brazil in line with production fall of Brazil in 2016. From 10,300 Mt of pepper imported from Brazil in 2015 decrease to 9,200 Mt in 2016. Vietnam and Indonesia supplied 7,000 and 3,000 Mt respectively. Netherland supplied 4,200 Mt (2,200 Mt of whole and 2,000 Mt of ground pepper) in 2016.
Mar 09 - Uganda Sugar Exports Sustaining Growth (Dow Jones)
Sugar exports from Uganda, East Africa's only surplus producer of the sweetener continue to grow steadily, along with rising exports, says Wiberforce Mubiru, head of Uganda Sugar Manufactures Association. White sugar shipments more than doubled in 2016 to 75,000 tons, following strong demand from regional markets, notably Kenya and Congo. Total sugar output may rise 10% to 475,000 tons this year boosted by mill and farmland expansions. It's good news for Uganda which is trying to steady its sugar industry in a region flooded with sugar inflows from lower cost producers in Asia and South America.
Mar 09 - Brazilian 2016-2017 Coffee Crop 85% Sold (SAFRAS Dow Jones)
Brazilian coffee growers had already sold 85% of the 2016-2017 harvest by March 7, according to agricultural consultancy Safras & Mercado. That's similar to the 88% already sold by the same date last year, and ahead of the 81% five-year average, Safras said. The group has forecast a coffee crop of 55.1 million 132-pound bags for the season, and 46.9 million bags have been sold, according to Safras. Brazil is the world's biggest producer and exporter of coffee, and Safras's forecast would be a record for production.
Mar 09 - Tokyo Rubber Drops as Shanghai Futures Skid (Dow Jones)
Benchmark Tokyo rubber futures fell as declines in Shanghai dampened investor spirits. Futures there have been stressed due to higher stockpiles and persistent concerns about slower growth in China's economy. The Tokyo Commodity Exchange rubber contract for August delivery eased 0.5% to Y257/kilogram, showing some stability after prices yesterday hit a 2-month low.
Mar 09 - EU sugar stocks seen falling by more than 50 pct
European Union sugar stocks are forecast to fall by more than 50 percent by the end of the current 2016/17 season as production rises but remains below the five-year average, the European Commission said on Wednesday. White sugar production was estimated at 16.7 million tonnes, up 12 percent from the sub-par crop in 2015/16 but ending stocks were put at 0.9 million tonnes, down from 1.9 million a year earlier and 3.9 million at the end of the 2014/15 season. Click here to read full stories.
Mar 09 - China cuts 2016/17 sugar output, ups deficit estimates
China's Ministry of Agriculture cut its forecast for 2016/17 sugar output by 200,000 tonnes from last month's estimate to 9.7 million tonnes, leading to a bigger-than-expected deficit, it said in its monthly crop report published on Thursday. The new supply deficit forecast is 1.87 million tonnes, up from 1.67 million last month. Estimates for corn, soybeans and cotton supply and demand were unchanged from last month. Click here to read full stories.
Mar 09 - Colombia must replant 90,000 coffee hectares/yr to maintain output - federation
Colombia needs to replace at least 90,000 hectares of coffee trees, some 10 percent of its crop, annually to keep production above 14 million 60-kg sacks per year, the head of the coffee growers' federation said on Wednesday. The Andean nation, which is the world's top producer of washed arabica, produced 14.23 million bags last year, the highest in 23 years, despite El Nino drought and a 45-day truckers strike. Click here to read full stories.
Mar 08 - Cameroon Cocoa Prices Fall Further on Ample Supply (Dow Jones)
Cocoa prices remain under pressure in Cameroon after a good harvest in the West African country, with prices down more than 5% in the past week in the chief port of Douala, according to latest industry data.
Cocoa beans ready for shipment sold for 1,106 Central African francs ($1.77) per kilogram, down 5.5% from the XAF1,170 traders paid for the crop last week, according to figures from the West African nation's National Cocoa and Coffee Board.
Rising stockpiles and ample supplies have kept downward pressure on prices, according to traders and exporters, though they noted the weakness in cocoa prices on world markets too.
Favorable weather has led to this year's good crop in Cameroon and could extend the harvest into April from the typical tail end of the season in February, traders said.
Mar 08 - Tokyo Rubber Falls on Weak Oil, Shanghai Futures (Dow Jones)
Benchmark Tokyo rubber future prices end Wednesday's trading session lower hurt by weaker Shanghai rubber and declines in crude-oil prices. Prices of crude-oil have fallen amid persistent worries of mounting supplies and weak demand from top-consumer China. "Investors have been concerned over substitution of natural rubber with synthetic rubber due to the fall in crude prices," says Kaname Gokon of Okato Shoji in Tokyo. The Tocom benchmark six-month contract ends down Y11.0 at Y258.4/kg.
Mar 08 - Mexico cancels sugar export permits to U.S. in trade dispute
Mexico has canceled existing sugar export permits to the United States in a dispute over the pace of shipments, according to a letter seen by Reuters, in a flare-up industry sources said could temporarily disrupt supplies. The letter sent by Mexico's sugar chamber to mills on Monday partly blamed the situation on unfilled positions at the U.S. Department of Commerce, which it said has led to a "legalistic" interpretation of rules with no U.S. counterparts in place in Washington for Mexican officials to negotiate with. Click here to read full stories.
Mar 08 - Pressure May Build on India to Allow Sugar Imports (Dow Jones)
A sugar-industry group is projecting a 19% slump in output from No. 2 producer India this season amid low cane availability due to poor rainfall in major growing states. The yield of sugarcane harvested in January and February in Maharashtra and Karnataka "turned out to be substantially lower to what was being expected," says the Indian Sugar Mills Association. India's sugar season runs from October-September. So far, the Indian government has ruled out the need for imports, claiming to have sufficient supplies to meet demand. Local consumption is pegged at around 24 million tons, and this season's production is seen being close to 20 million.
Mar 08 - Tocom Rubber Opens Lower on Shanghai Weakness (Dow Jones)
Tokyo rubber futures open sharply lower Wednesday led by losses in Shanghai rubber future prices. Weak demand from China has led to pessimism among investors, traders say. Investors will be "more cautious" before making their next moves, says Kaname Gokon of Tokyo-based Okato Shoji. The Tokyo benchmark rubber contract is currently trading down Y10.7 at Y258.7/kg. It opened at Y269.1/kg.
Mar 07 - Mexico cancels sugar export permits to the US in "absurd" dispute
Mexico has canceled existing sugar export permits to the United States to avoid penalties in a dispute over the pace of shipments, a document seen by Reuters said, partly blaming the issue on unfilled positions at the U.S. Department of Commerce. It was not immediately clear what impact the cancellation would have on exports to the United States. The document, sent by Mexico's sugar chamber to mills on Monday, said existing permits would be reissued in April. Click here to read full stories.
Mar 07 - Hot, dry weather in Ivory Coast sparks concern for cocoa crop
Dry weather and strong heat in some of Ivory Coast's main cocoa growing regions are raising concerns about the size and quality of the upcoming cocoa mid-crop, farmers said on Monday, following forecasts for record production. The dry season in the world's top cocoa producer stretches from mid-November to March and it is normally very hot in February and March. Exporters and pod counters have predicted record production of nearly 2 million tonnes this season due to good weather. Click here to read full stories.
Mar 06 - Speculators lift bearish ICE cocoa stance to record
Speculators sharply increased their bearish stance in cocoa contracts to a record on ICE Futures U.S., in the week to Feb. 28, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday, as prices approached a 9-1/2-year low. They cut their net long positions in raw sugar and arabica coffee futures and options, and became increasingly bullish in cotton, the data showed. Click here to read full stories.
Mar 06 - El Niño friendly to U.S. crops, unkind to Southeast Asia - Braun
El Niño might be on tap for mid-2017, a faster than normal reappearance, and the potential impacts on global agriculture depend partly on the timing of its arrival. El Niño is the warm phase of El Niño-Southern Oscillation, which is characterized by sea surface temperature variations along the equatorial Pacific Ocean. Both El Niño and its cold counterpart La Niña are known to alter global climate patterns whenever either one is present. Click here to read full stories.
Mar 06 - MSM Gets Another Upgrade Amid Sugar-Price Hike (Dow Jones)
As Malaysian authorities raise domestic sugar prices by up to 7%, AllianceDBS makes much-bigger increases to its target price and profit views on sugar producer MSM (5202.KU) while upgrading the firm to hold. "We are not entirely surprised by such a move as it has been highlighted as one of the key upside risks to our previous recommendation." The broker's target jumps 57% to MYR4.70 while EPS views through 2018 climb 40-76%. Shares, which rose a combined 6.3% the prior 2 sessions amid the prospects of higher sugar prices, retreat 1.5% to MYR4.64.
Mar 06 - Tocom Ends Higher, Tracking Shanghai Gains (Dow Jones)
Tokyo rubber future prices end higher Monday guided by a rise in Shanghai rubber futures. "Prices are higher as investors are willing to buy back," notes Kaname Gokon of Okato Shoji brokerage in Tokyo. He says a decline in natural rubber supplies is also supporting prices. The Tokyo rubber six-month contract ends at Y276.0/kg, up Y3.1.
Mar 06 - New Zeland Making Less Wine, but Exporting a Lot More of It (Dow Jones)
New Zealand is expect to produce 301 million liters of wine, or 3% less wine in 2017 on year but will see exports grow 8% on year, says the US Department of Agriculture in a note. "All industry indications point to overseas demand continuing to be robust and wine exporters continuing to be in a grow mode." The USDA estimates that 310 million liters of wine was produced in 2016--this was forecast lower due to damage caused by a significant earthquake in November 2016.
Mar 03 - Weekly Pepper Bulletin Week 27 Feb-3 Mar 2017 (WPB)
- The market was calm with limited activity. Trading in Vietnam was also limited although new material from current harvest has arrived in the market. Buyers still keep on side line waiting for price further decrease and on the other side, suppliers are reluctant to release material below current low levels. In India the market was also inactive and price decreased marginally closing the week. Although the price has decreased, but still ruled at highest level when compared to price prevailed in other sources.
- In Indonesia, inventory is quite minimal; while new material is only expected to be available in July/August. However, supplier in Lampung and Bangka follow market trend prevailed in Vietnam. In Sarawak local price was reported to have decreased by around MYR 10 per Kg.; while for FOB price remained stable at the level of US$ 7,780 and US$ 10,860 per Mt respectively for black and white pepper.
Mar 03 - Pepper's Import into United Kingdom (WPB)
- Pepper import in to the United Kingdom increases year by year and in the last twelve years the increase was more than double from 6,873 Mt in 2005 to 14,270 Mt in 2016. Significant increase was recorded in the import of ground pepper from 3,535 Mt in 2005 to 9,112 in 2013, while import of whole pepper has increase at lower rate. In the last three year however, import of ground pepper decreased, while for whole pepper increased.
- In 2016, total import of pepper to the United Kingdom increased by 9% from 13,150 Mt in 2015 to 14,270 Mt in 2016. Import of whole pepper increased substantially by 72%, while import of ground pepper decreased by 23%. Major share of pepper imported in 2016 was entered into the UK through neighbor-trading countries, the Netherlands, supplying 37% of the total imports. Another 37% was imported directly from Vietnam (22%) and India (15%).
Mar 03 - Iran's GTC tenders for 60,000 tonnes raw sugar - trade
Iran's state purchasing agency the Government Trading Corporation of Iran (GTC) is tendering to buy 60,000 tonnes of Brazilianraw cane sugar in another sign that the country aims to boost stocks, European traders said on Thursday. Last week, trade sources said private importers in Iran had bought up to 250,000 tonnes of Brazilian raw sugar in the first purchases for months. Click here to read full stories.
Mar 03 - World food prices edge higher in Feb -FAO
World food prices rose slightly in February, boosted in particular by cereals, the United Nations food agency said on Thursday. The Food and Agriculture Organization's (FAO) food price index, which measures monthly changes for a basket of cereals, oilseeds, dairy products, meat and sugar, averaged 175.5 points in February, up 0.5 percent on January levels. Click here to read full stories.
Mar 03 - Rubber Ends Down Amid Commodities Selloff (Dow Jones)
Benchmark Tokyo rubber futures fell amid broad declines in commodities. The dollar in Asian trading eased some versus the yen, further hitting rubber. Meanwhile, "the uncertainty about the future has expanded," says Kaname Gokon of Okato Shoji in Tokyo, and investors will "take a careful approach" before making their next moves. The Tokyo Commodity Exchange rubber contract for August delivery fell 0.7% to Y272.9/kilogram.
Mar 02 Honduras coffee exports soar 36 pct in February - IHCAFE
Coffee exports from Honduras soared by 36 percent in February, compared with the same month last season, due to increased production, the national coffee institute (IHCAFE) said on Wednesday. Shipments from the largest coffee exporter in Central America totaled 953,831 60-kg bags in February, compared with 703,525 bags in the same month of the 2015-2016 harvest, according to a preliminary report from IHCAFE. Click here to read full stories.
Mar 01 - Cameroon's Arabica Coffee Prices Fall Amid Plentiful Supply - Traders
Arabica coffee prices at Cameroon's biggest port of Douala plunged nearly 8% on the week,
following plentiful supply of the crop, exporters and traders said Wednesday.
They said a kilogram of arabica coffee ready for export sold for 1,818 Central African francs ($2.93), down 7.8% from XAF1,972, figures from Cameroon's cocoa and coffee board indicated Wednesday.
The price fall reverses last week's rise.
"Most of the coffee been sold now is coffee that traders and farmers have been withholding from markets. They release the stocks when exporters delay to buy the crop," a middleman trader said.
Mar 01 - Global coffee exports rise 6.7 pct in January - ICO
Global coffee exports rose 6.7 percent in January from a year earlier to total 9.84 million 60-kg bags, the International Coffee Organization (ICO) said on Tuesday. For the first four months of the 2016/17 season, which began on Oct. 1 last year, coffee exports were up 8.9 percent at 39.98 million bags. Click here to read full stories.
Mar 01 - ICCO sees global cocoa surplus of 264,000 T in 2016/17
Cocoa production is set to climb by almost 15 percent in 2016/17 (October/September) leading to a global surplus of 264,000 tonnes, the International Cocoa Organization said on Tuesday in its first forecast for the season. "For the current season, favourable weather conditions helped crops across the main cocoa-growing countries within the West African region," the ICCO said. Click here to read full stories.
Mar 01 - El Niño may be fast-tracking to arrive by summer - Braun
The path to another round of El Niño in 2017 appears to be shortening, as tropical Pacific Ocean waters have been warming at a substantial rate. Weather forecasters have been eyeing for a couple of months a possible return this year of El Niño, which normally comes around every two to seven years and last occurred in 2015/16. Click here to read full stories.
Mar 01 - Cuban raw sugar output tops 1 million tonnes so far in 2016-2017 season
Cuba said on Tuesday it had produced one million tonnes of raw sugar so far in the 2016-2017 harvest season, toward an estimated goal of just over 2 million tonnes. Liobel Perez Hernandez, spokesperson for AZCUBA, the state-run sugar monopoly, told the state-run Cuban News Agency that the mark had been reached earlier than in the previous 15 harvests. Click here to read full stories.
Mar 01 - Wilmar seen as sole buyer of record ICE March raw sugar - traders
Wilmar International Ltd is seen as the sole buyer of around 1.2 million tonnes of raw sugaragainst March futures on ICE Futures U.S. that expired on Tuesday, three traders said, marking a record for that contract. It also marks the seventh time out of the past eight contracts that Wilmar has taken delivery against the ICE contract. Click here to read full stories.
Mar 01 - Arabica Coffee Outlook Remains Bearish, Says BMI (BMI Dow Jones)
The outlook for Arabica coffee prices remains bearish, as the global coffee market will likely be better supplied over the coming months as Asian supply rebounds, says BMI Research in a note. It estimates the Brazilian up-year crop grew by 10% year on year due to good weather during the growing season, while it forecasts there will be record production in Colombia. Long term, it says following a period of weakness leading into second half 2017, "we expect prices to trade sideways to slightly higher out to 2021 as the global market alternates between small surpluses and deficits."
Mar 01 - India's Likely Sugar Production Drop to Firm up Prices (ICRA Dow Jones)
The expected fall in India's sugar output amid rising demand will boost prices of the sweetener, ratings agency ICRA says. Overall sugar production will likely decline by 9% and fall short by up to 2.8 million tons from domestic consumption, which continues to grow at about 3% every year, the agency says in a research note. "Domestic sugar consumption will outpace production," ICRA head Sabyasachi Majumdar says. The fall in production is attributed to lower production in India's top-growing states of Maharashtra and Uttar Pradesh. Sugar output in the current crop season that began in October stands at 14.67 million tons, compared with 17.33 million tons in the same period a year ago, according to the Indian Sugar Mills Association, an industry body.
Mar 01 - Japan Rubber Gains With Stocks as Yen Falls (Dow Jones)
Tokyo rubber futures rose with the dollar rebounding versus the yen, which stoked a rally in Japan stocks. Kaname Gokon of Tokyo-based brokerage Okato Shoji notes "investors are optimistic about more investment coming." The Tokyo Commodity Exchange rubber contract for August delivery rose 2% to Y271.8/kilogram.
Feb 28 - Uganda Coffee Exports Maintain Rising Streak (Dow Jones)
Coffee exports from Uganda will likely rise for the 4th month in a row, as farmers in Africa's No 1 exporter release more stocks amid rising prices, says the state-run coffee regulator. February shipments are estimated at 300,000-60 kilogram bags, 4% higher on year, extending a rising streak into the fourth month. Cumulative coffee exports since the start of the 2016-17 season are 26% up on year. Export earnings rose 54% to $175 million in the same period, boosted by higher export volumes of robustas beans, amid tightening supplies from producers in Asia and South America. Ugandan farmers are still holding around half a million coffee bags in carryover stocks from last season, the regulator says.
Feb 28 - India Imports Less Rubber as Domestic Output Up (Dow Jones)
India's overseas rubber purchases slumped 39% in January from a year earlier to 24K tons as local output jumped 27% to 66K as farmers increased tapping to take advantage of a jump in global prices, according to the state-run Rubber Board of India. Consumption remained largely flat at 84K tons. Prices bounced to start 2017 amid concerns about supply disruptions in top-producer Thailand because of flooding there. India also imports natural rubber from Indonesia, Vietnam and Malaysia.
Feb 28 - Growing Coffee Deficit Likely to Support Prices (Dow Jones)
The total Arabica and Robusta coffee deficit for the 2017-8 crop is now expected to be 5.2 million bags, a gap which will likely support prices, says Olam (O32.SG) CEO Sunny Verghese. The farm-commodities supplier sees prices moving higher, particularly for robusta beans, given a growing supply-and-demand imbalance. "We expect there to still be room for prices to adjust given the deficit that is emerging." He notes that while supplies remain plentiful in consuming countries, they've tightened in producing ones.
Feb 28 - Shanghai, Stronger Yen Push Down Tocom Rubber (Dow Jones)
Benchmark Tokyo rubber futures fell amid declines in China and a stronger yen against the dollar. Investors are "finding it tough to take positions right now, with many sitting on the sidelines" ahead of Trump's address to Congress on Tuesday, says Kaname Gokon of Okato Shoji in Tokyo. Like other asset classes, there's a "wait-and-see approach." Tocom rubber contract for August delivery dropped 1.3% to Y266.4/kilogram.
Feb 28 - Ivory Coast rains bode well for cocoa mid-crop but heat is a concern
Good rains in the last week in most of Ivory Coast's main cocoa growing regions are a positive sign for the development of the mid-crop but hot weather could hurt it, farmers said on Monday. The dry season in the world's top cocoa producer runs from mid-November to March, while the weather is normally extremely hot between February and March. Click here to read full stories.
Feb 28 - Chance of El Nino at 50 percent in 2017 - Australian weather bureau
The chance of an El Nino in 2017 has increased in the last two weeks, the Australian Bureau of Meteorology (BOM) said on Tuesday, indicating a 50 percent chance the weather event resurfaces over the next six months. The BOM said the eastern Pacific Ocean has warmed over the last fortnight, driving many of its climate models towards the El Nino threshold over the next six months. Click here to read full stories.
Feb 27 - Uganda Eyes New Coffee Varieties To Lift Robusta Output (Dow Jones)
Ugandan coffee growers are turning to quick-maturing tree varieties as Africa's top robusta producer steps up efforts to lift output, says William Wagoire head of Uganda Coffee Research Institute. The research body has developed several strains of disease-resistant robusta trees, currently being distributed to farmers in a nation-wide drive to plant 900 million trees by 2020. The varieties could reverse slumping coffee output in Africa's top exporter, blamed on pest infestations and ageing trees. Uganda's coffee exports dropped 4% to 3.32 million bags last season, the third annual drop in a row. "Unlike the current trees which take 3 to 5 years to mature, the new varieties mature in less than two years," Mr.Wagoire says.
Feb 27 - Satellite Survey Firm Sees Smaller Brazil Sugarcane Output (Dow Jones)
Brazil's sugar-growing center-south region could produce 570 million tons of sugarcane in 2017-18, below most analysts' estimates, based on a planted area of 7.6M hectares and a yield of 75t/ha, writes research firm Archer Consulting, citing figures produced by Sigma, a crop forecaster that uses satellite data. Archer calls the potential for a smaller-than-expected Brazilian crop a bullish factor that could change the trajectory of prices.
Feb 27 - Speculators raise bearish ICE cocoa stance to 2012 high
Speculators slightly raised their net short position in cocoa contracts on ICE Futures U.S., taking it to the biggest since April 2012 in the holiday-shortened week to Feb. 21, U.S. government data showed on Friday. The dealers added to their net long position in arabica coffee for the first time in four weeks, while they cut it in cotton for the first time in a month. They became increasingly bullish in raw sugar futures and options, Commodity Futures Trading Commission (CFTC) data showed. Click here to read full stories.
Feb 27 - India Coffee Exports Rise 6% as Brazil Output Falters (Dow Jones)
India's coffee exports have jumped 6% so far this year, thanks to growing appetite in international market as top-producer Brazil grows less coffee due to drought. Coffee exports from India rose 46,000 tons from January 1 till February 24, compared to 43,436 tons during the same period a year earlier, according to the Coffee Board of India. India has traditionally been a supplier of the arabica variety of coffee bean but growers have shifted to robusta in recent years due to rising global demand for the variety. Last year, arabica shipments from India grew nearly 18% to 51,648 tons from 43,785 tons in 2015. Robusta exports was up around 20% at 201,000 tons versus 167,000 tons in 2015.
Feb 24 - Weekly Pepper Bulletin Week 21-24 February 2017 (WPB)
- The market continued to slow down this week. Except in Sri Lanka, local price of black pepper at sources decreased up to 6%. For white pepper, the decrease was relatively lower. FOB price also decreased, with exception of Sarawak which is reported to have remained stable as last week.
- In Vietnam, the harvest is on upswing trend. New material from initial harvest has started arrive in the market. Overseas demand however is sluggish. Local price of black pepper at HCMC decreased almost daily from VND 116,500 per Kg at the beginning of the week to VND 109,500 at the week's close. FOB price of Vietnamese black pepper decreased by 2%. In respect of white pepper, the local price of white pepper was reported stable at VND 157,500 per Kg throughout the week; but FOB price of Vietnamese white pepper decreased by 6%.
- In Lampung, the market was quiet in view of exhausted stock available at farm. The price however decreased following market trend prevailed in Vietnam. Up coming crop in Indonesia is expected to take place in July/August.
Feb 24 - Pepper's Import to the United States (WPB)
- In the last decade import of pepper into the United States of America was on average at the level of around 70,000 Mt. During 2015, import of pepper into the United States increased significantly from 68,800 Mt in 2014 to 80,360 Mt in 2015. A substantial increase of 45% was recorded for ground. Import of whole black increased by 10%, while for white the increase was only 3%.
- In 2016 the United States imported 75,360 Mt of pepper, recording a decrease of 5,000 Mt or 6% from 80,360 Mt in 2015. Viet Nam was the most important single source for the USA, supplying 52%. Other producing countries, such as Brazil, Indonesia and India supplied together around 42%. During the last ten years, import of black pepper into the USA fluctuated at the range of 43-53,000 Mt, but for white pepper was relatively stable. Import of ground pepper is consistently increasing from 7,500 in 2007 to 21,500 Mt in 2016, as shown in the following table and chart.
Feb 23 - Avocado Price Surge Can't Slow Guacamole Sales (Dow Jones)
Avocado prices are "historically high," but consumers' desire for guacamole hasn't flagged, according to Hormel Foods (HRL). The Spam maker's also a major marketer of premade guacamole following its 2011 acquisition of a Mexican food company, and CEO Jim Snee says shoppers continue to open their wallets for the more-expensive gooey green stuff. "Those prices have been in the marketplace for a little while now but consumer demand remains strong," Snee tells analysts, adding that there is "adequate supply" for avocadoes despite the drought in California and a farmworker strike in Mexico driving prices higher.
Feb 23 - Brazil's Temer reverses decision to import robusta coffee from Vietnam
Brazilian President Michel Temer has provisionally suspended authorization for local coffee processors to import robusta beans from Vietnam, in a sudden reversal of this week's decree that marked the first time the world's largest producer would buy green coffee abroad. "Temer has decided to temporarily suspend the measure to better evaluate the situation with other government bodies," the president's office said in a statement on Wednesday. Click here to read full stories.
Feb 23 - British Sugar to expand output as EU quotas end, stocks fall
Sugar production in Britain will expand significantly during the 2017/18 season, boosted by the abolition of European Union quotas and a decline in stocks, Paul Kenward, managing director of British Sugar, said on Wednesday. The drilling of the next sugar beet crop is due to start next month with the area seen about 30 percent higher, Kenward told Reuters on the sidelines of the National Farmers Union's annual conference. Click here to read full stories.
Feb 23 - Ivory Coast sells 350,000 T of cocoa defaults, excess production
Ivory Coast sold at auction around 350,000 tonnes of cocoa from defaulted contracts and excess production, the agriculture minister said on Wednesday, adding support for exporters related to the sales was covered by the country's reserve fund. A wave of defaults by exporters who wrongly speculated world prices would continue a long rise has created a glut of beans that has jammed up ports and warehouses, leaving cocoa to rot on trees for lack of buyers. Click here to read full stories.
Feb 22 - Iran makes first raw sugar purchases in months to boost stocks – trade
Importers in Iran have bought up to 250,000 tonnes of Brazilian raw sugar in the first purchases in months as the country looks to bolster strategic stocks, trade sources said on Tuesday. The sources said the cargoes were for February shipment, adding that the last time Iran tapped the international market was in the third quarter of last year. Click here to read full stories.
Feb 22 - Ivory Coast cocoa glut fuels cross-border smuggling
A cocoa glut in top producer Ivory Coast that has driven down prices and paralysed buying is also fuelling a rise in the smuggling of beans to neighbouring countries, farmers and exporters said on Tuesday. Cocoa has been piling up at Ivorian ports and left rotting on trees after some exporters defaulted on export contracts, having wrongly speculated that prices would extend the gains seen over the previous five years. Click here to read full stories.
Feb 22 - ISO lowers 2016/17 global sugar deficit forecast
The International Sugar Organization on Tuesday scaled back its global sugar deficit forecast for the 2016/17 season to 5.869 million tonnes, from a previous estimate of 6.19 million tonnes. The inter-governmental body also projected there would be a 5.359 million deficit in the 2015/2016 season. Click here to read full stories.
Feb 22 - Big Corn courts old foe Big Oil to combat electric car threat
A U.S. biofuels lobbying group on Tuesday said it is seeking to work with longtime rival the oil industry to fight the threat to both from subsidies for electric vehicles. The two industries have been at loggerheads for years as they seek sway with Washington over how much biofuel should be included in gasoline and diesel. Click here to read full stories.
Feb 22 - Trump seeks to quell ethanol industry worry as Pruitt enters EPA
President Donald Trump on Tuesday assured ethanol industry advocates of their importance in U.S. energy strategy in an apparent bid to quell concerns over potential changes to policies that mandate the use of such renewable fuels. The comments came as Scott Pruitt took over as head of the Environmental Protection Agency (EPA) and after Trump picked Carl Icahn as a senior advisor. Both men in the past have criticized the Renewable Fuel Standard (RFS), which requires biofuels like ethanol to be blended into gasoline. Click here to read full stories.
Feb 22 - Rwanda Coffee Exports Fall Slightly Amid Drought (Dow Jones)
A low-yielding crop cycle and inefficient rains hurt Rwanda's 2016 coffee exports, says the National Agricultural Export Board. Shipments from Rwanda, which grows premium Arabica coffee beans, dropped 0.8% to 18,640 tons and export earnings dropped 6% to $58 million. Around 60% of Rwanda's coffee output falls in the speciality category, quadruple east Africa's average, and bumper harvests are often preceded by a small crop.
Feb 22 - Tocom Rubber Ends Lower Amid Decline in China (Dow Jones)
Tokyo rubber futures fell amid a drop in Shanghai. Investors have been worried about oversupplies, resulting in light trading volume. Kaname Gokon of Okato Shoji thinks it will "take a while for prices to stabilize." The Tokyo Commodity Exchange rubber contract for July delivery dropped 0.9% to Y289.5/kilogram.
Feb 21 - Brazil publishes rules for robusta coffee imports
Brazil's Agriculture Ministry published the rules companies should follow to bring into the country robusta coffee from Vietnam in its official gazette on Monday, marking the first time the world's largest producer will buy coffee abroad. The publication was the last step required for the local coffee industry to start buying Vietnamese robusta cargos to address a local supply tightness after two years of drought in the main robusta-producing state of Espirito Santo hurt output. Click here to read full stories.
Feb 21 - Ivory Coast weather to boost cocoa mid-crop, rain needed in east
Rain last week in most of Ivory Coast's main cocoa growing regions will help produce an abundant April-to-September mid-crop, farmers said on Monday, though dry, hot weather was damaging flowers in the east. The dry season in the world's top cocoa producer runs from mid-November to March. It has been less severe this year than last year and cocoa production is expected to hit a record high of nearly 2 million tonnes this season. Click here to read full stories.
Feb 21 - Ghana cocoa buyers say Cocobod financing delays hindering purchases
Licensed cocoa buyers in Ghana said on Monday that weeks-long delays in the release of financing by industry regulator Cocobod was hindering their ability to purchase the beans needed to fill their supply contracts. Ghana, the world's second biggest cocoa producer, has around 20 active Licensed Buying Companies (LBC), which sign rolling contracts to supply specific amounts to Cocobod. Many receive an advance which they repay when the cocoa is delivered under a schedule that includes the buyers margin, evacuation cost and a bonus. Click here to read full stories.
Feb 20 - Funds Reduce Bets on Gains in Robusta Coffee (Dow Jones)
Funds' chipped back their bullish bets on robusta coffee for the third-consecutive week in the week to Feb. 14, according to market data released by ICE on Monday. In that week, funds' pulled back on the net-long position by 8.8% to 39,682 lots. On the market that week, robusta prices traded in London fell by 1.9%. In New York, the speculative net-long position on arabica coffee fell by 11.9% to 17,511 lots in that week.
Feb 20 - Speculators Trim Bets on London Cocoa Prices Falling (Dow Jones)
Speculators cut back their bearish bet on the London-traded cocoa market in the week to Feb. 14, according to market data released on Monday by ICE. In that week, funds' pulled back bets on London cocoa falling still further by 0.3%, to 22,180 lots. On the London market, cocoa prices fell 5.1% in that week. In New York, speculators increased their bearish position on dollar-traded cocoa by 2.9% in that week, to 30,246 lots.
Feb 20 - Brazil sugar mills hedge record volume through New York futures
Brazilian sugar mills have sold forward through futures contracts in New York 45.8 percent of the exportable volume projected for the 2017/18 center-south crop, a record volume, Sao Paulo-based Archer Consulting said on Friday. The amount of sugar hedged is 12.1 million tonnes, said the consultancy in a report, adding that the average price on those derivatives was 17.54 cents per pound. Click here to read full stories.
Feb 20 - Speculators hike bullish cotton bet to record, up bearish cocoa stance
Speculators hiked their bullish stance in cotton contracts on ICE Futures U.S. to a record in the week to Feb. 14, as they raised a bearish stance in cocoa futures and options to a fresh near five-year high, U.S. data showed on Friday. Speculators reduced their net long positions in raw sugar and arabica coffee contracts, the Commodity Futures Trading Commission data showed. Click here to read full stories.
Feb 20 - India's Declining Sugar Output Might Lead to Higher Imports (Dow Jones)
India's sugar production has dropped 15% so far this year, hurt by lower cane production in top-growing states, raising the possibility of higher imports by the world's largest consumer of the sweetener. Sugar output in the current crop season, which began in October, stands at 14.67 million tons compared to 17.33 million tons in the same period a year ago, according to the Indian Sugar Mills Association, an industry body. The fall in output is attributed to lower production in the top sugar growing states of Maharashtra and Uttar Pradesh. Consequently, India might need to import around 1.5 million tons of sugar this season, Angel Commodities, a Mumbai-based brokerage, said in a report. Sugar prices are expected to go "higher on anticipation of further increase in demand," it adds.
Feb 20 - China Almond Demand Seen Boosting US Exports (Dow Jones)
Increased demand from China for almonds is expected to boost US exports of the tree nut this season, says the USDA. Its forecast of Chinese imports has increased 30,000 metric tons to 100,000 as the baking and snack-food industry seek more product. Meanwhile, anticipated US exports overall rose 10,000 tons to 635,000.
Feb 17 - Weekly Pepper Bulletin Week 13-17 February 2017 (WPB)
Pepper price in India and Vietnam has been reported to decrease during the week under review, while in other origins, prices were reported stable. The decline of prices in Vietnam and India is understood as the arrival of new materials from the current harvest take place in India to the market is now increasing. In Vietnam pepper harvest has also started. There have been reports that output of this year harvest would be more or less the same as last year output. Meanwhile production of pepper in Indonesia for this year harvest is anticipated to be lower than estimated earlier, mainly due to unfavourable weather condition. Prolonged wet weather with high intensity of rainfall has resulted less flowering. Pepper price in Lampung and Bangka were reported to remain stable. Stable price was also reported in Sri Lanka.
Feb 17 - Pepper's Import by France (WPB)
- Import of pepper into France, one of the main important consuming countries of pepper in Europe increased annually from around 8,000 Mt in 2012 to around 10,200 Mt in 2015 and is estimated a volume of more than 11,000 Mt has been imported into France in 2016.
- During January-November 2016, import of pepper by France has reached 10,513 Mt comprising of 7,724 Mt of whole pepper and 2,789 Mt of ground pepper, showing an increase of around 12% as against 9,417 Mt (6,923 Mt of whole and 2,494 Mt of ground pepper) in the same period of 2015. Up to December 2016, import of France is estimated to cross 11,000 Mt. Brazil, Vietnam and Indonesia were traditionally the main sources of pepper for France. They together supplied more than 65% of pepper into France. During January-November 2016 Vietnam was the most important source of pepper for France, supplying 28% followed by Brazil (21%) and Indonesia (18%). This was possible, since production of Vietnam increased during the year; while in Brazil and Indonesia decreased. Germany also supplied significant quantity, mostly ground pepper to France.
Feb 17 - Brazil government approves first-ever robusta coffee imports
Brazil's government has authorized the country's first-ever imports of robusta coffee, at the request of the instant coffee industry, and it should soon start taking delivery of limited amounts from Vietnam, an agriculture ministry official said on Thursday. Silvio Farnesi, a director in the ministry's coffee department, said the government foreign trade agency known as Camex approved the imports at a meeting on Wednesday. Click here to read full stories.
Feb 16 - Vietnam Pepper Output Seen Rising 15% This Year (Dow Jones)
Vietnam's black pepper output will likely rise 15% this year to 180,000 metric tons, putting more downward pressure on prices, the government says Thursday. It says pepper supply is surpassing demand, adding that domestic prices have fallen by 30% since June last year. Vietnam is the world's largest black pepper exporter, accounting for half of global trade. It says Vietnam's black-pepper exports are expected to face difficulties this year as key markets, including the EU and the US, are applying stricter quality requirements.
Feb 16 - Brazil takes step closer to allow robusta coffee imports
A technical group linked to Brazil's Foreign Trade Chamber (Camex) has approved the authorization to open robusta coffee imports at near zero tariff, the country's agriculture ministry said in a statement on Wednesday. The decision by the Camex executive management committee, known as Gexec, still has to be ratified by the Camex board that is made up of the ministers of agriculture, finance and foreign relations among others. Click here to read full stories.
Feb 16 - Argentina could double percentage of ethanol in fuels -official
Argentina in the next two to three years could double the proportion of ethanol used in gasoline from the current 12 percent of the blend, a government official told Reuters. If the government goes forward with the increase, the South American agricultural country's annual consumption of ethanol, composed of corn or sugar cane, would total about 2 million cubic meters (70.6 million cubic feet) annually. The move could help the country reduce its energy deficit. Click here to read full stories.
Feb 16 - Ivory Coast cocoa production expected to hit record - exporters
Cocoa production in Ivory Coast is expected to hit a record high of nearly 2 million tonnes this season as good weather boosts crops, according to a forecast of exporters and pod counters. Output in the main harvest is forecast at 1.4 million tonnes, with the mid crop hitting 500,000-550,000 tonnes, they said. The right mix of rain and sun has helped crops across the growing regions of the West African country, a change from last year when strong, dusty harmattan winds off the Sahara devastated crops. Click here to read full stories.
Feb 15 - I.Coast exporters ask cocoa regulator to reveal scale of defaults
One of Ivory Coast's main cocoa exporters' associations on Tuesday called for the country's marketing board to declare the amount of defaulted export contracts it has resold, stating the information is needed to stop a free fall in world prices. Cocoa has piled up at Ivorian ports for weeks and has been left to rot on trees as exporters, having wrongly speculated that prices would extend years-long gains, declined to purchase beans to fill unprofitable contracts. Click here to read full stories.
Feb 14 - Olam Sees China Sugar Output Capped at 10.5M Tons (Dow Jones)
The gradual shift of China's increasingly wealthy population away from farming will lead the country's sugar production to stagnate, says Piero Carello, general manager at trade house Olam Europe, at an industry conference in Dubai. "What we feel moving forward is that production will be capped at around 10.5 million tons he says. That compares with the USDA's estimate of 9.53M tons for the 2016-17 crop. That will leave China reliant to some extent on imports, with a production deficit of around 6.5M tons "pretty much in perpetuity," he says.
Feb 14 - Brazil's Agriculture minister asks for coffee import approval
Brazil's Agriculture Minister Blairo Maggi said on Monday he has asked the country's Foreign Trade Chamber (Camex) for authorization to open robusta coffee imports at near zero tariff, according to the ministry.If Camex board approves the request, it would be the first time in decades that Brazil imports coffee, amid a robusta supply crisis that threatens to sharply reduce instant coffee production. Click here to read full stories.
Feb 14 - Ghana's new cocoa industry regulator lowers output forecast
Ghana will produce about 800,000 tonnes of cocoa in 2016/17, the new head of industry regulator Cocobod, Joseph Boahen Aidoo, told Reuters on Monday, slightly reducing a previous forecast of 850,000 to 900,000 tonnes.Aidoo, a former minister responsible for the cocoa-rich Western region and agricultural expert, replaced Stephen Opuni, who was fired by President Nana Akufo-Addo in one of his first acts upon taking office on Jan. 7. Click here to read full stories.
Feb 13 - Cocoa rotting on trees after Ivory Coast exporter defaults
Cocoa is rotting on plantations and jamming up warehouses in western Ivory Coast's growing heartland as a wave of defaults by exporters has left few buyers for what is shaping into a strong harvest, farmers and cooperative heads said on Friday. The top producer's Coffee and Cocoa Council (CCC) acknowledged last week that some companies, having wrongly speculated that world cocoa prices would extend years-long gains, had defaulted on export contracts. Click here to read full stories.
Feb 13 - EU Shouldn't Increase Tariff-Free Sugar Imports (Dow Jones)
- Markus Neundorfer, a director at German beet-sugar producer Sudzucker, calls on the EU not to allow any more sugar to enter the bloc tariff-free. Starting Oct. 1, when the EU gets rid of a system of production quotas and minimum prices which has protected its sugar producers, "the EU will have one of the most overall sugar-market regimes worldwide. We would ask others to follow us. As long as that is not done, the EU should not grant additional access [to other countries' sugar] so as not to undermine the sector," he tells a conference in Dubai. "We are asking for a level playing field."
- Kona Haque, head of research at trade house ED&F Man, says what the sugar market needs now is "less speculation and more facts." In particular, she points to 3 uncertainties which need resolution before the market can break decisively out of the 20-21c/pound range it's occupied for most of this year: whether China and--most importantly--India will change restrictions on sugar imports and how Brazil's upcoming harvest turns out.
Feb 13 - EU Sugar-Output Capacity Could Jump 40% (Dow Jones)
EU sugar production could jump by about 7 million tons to around 25 million tons, based on extrapolating current trends of improving yields from sugar beet, says Sudzucker director Markus Neundorfer. But if that happened, he doesn't think it would lead to big global surpluses. "In the medium term, there is a need for new sugar. The current capacity is not enough to meet demand for the next 5-10 years." Still, he concedes there's doubt about how much sugar is actually required as consumption figures are difficult to verify and there has been much anecdotal evidence of food producers using less sugar for health and PR reasons.
Feb 13 - Sugar Market Relying on Huge Brazilian Crop (Dow Jones)
Asked in an audience poll how much sugarcane will be harvested in center-south Brazil in 2017, 60% of conference participants in Dubai see output ranging from 590-610 million metric tons--large by historical standards. "We really need the Brazilian crop to be a big one," says Kona Haque at ED&F Man, anticipating that increased exports to India will likely tighten the market in a few months. "A lot of the balance sheets that the trade is looking at are best-case scenarios," adds Michael Gelchie of trade house Sucden, who's nervous that bad weather will upset things.
Feb 13 - Could Myanmar Sugar Smuggling go Into Reverse ? (Dow Jones)
Last year saw millions of tons of sugar smuggled through Myanmar into China to take advantage of higher prices there. As the industry debates the prospect of exports to India to ease a shortage, S&P Global Platts' Claudiu Covrig wonders whether extra supply may eventually be brought into India through a reversal of the so-called Myanmar trade. Instead of Thai and Indian sugar being smuggled into China, Thai sugar could be moved illicitly across the border into India.
Feb 13 - Sweet Prospect of Indian Panic Buying of Sugar (Dow Jones)
Traders at a Dubai sugar conference are excited by the prospect of big export sales to India, where a bad harvest is crimping supplies. But before that can happen, the government needs to revise an import tariff. Traders gathered express the hope that Delhi will defer action until it's almost too late as to avoid offending domestic sugar farmers who don't like imports. That way, panic-buying could result in India ultimately purchasing much-more sugar than it actually needs.
Feb 10 - Weekly Pepper Bulletin Week 6-11 Feb17 (WPB)
The market showed a declining trend during the week. Arrival of new material from current harvest in India somehow has influenced market direction. In addition to the above, initial harvest in Vietnam has begun and prices at these sources have increased almost daily. In Lampung and Bangka, the market was quiet with limited activity. It is reported that due to unfavourable weather, production of pepper in Indonesia for this year harvest is anticipated to be lower than estimated earlier. Current price however has decreased as the demand is low. In Sarawak, pepper price remained stable; while in Sri Lanka a marginal increase was recorded.
Feb 10 - Pepper's Import by Japan (WPB)
Japan is one of the important markets for pepper in East Asia. On average, Japan imports around 8-9,000 Mt of pepper annually. It is interesting to note that portion of whole pepper imported into Japan decreases year by year, but for ground pepper is increasing. In 2015, total pepper imported by Japan was 9,070 Mt. Out of this 5,250 Mt (58%) was whole pepper and 3,820 Mt (42%) was ground pepper, as against 7,520 Mt (82%) of whole pepper and 1,680 Mt (18%) of ground pepper imported in 2006. In 2016, total import of Japan is estimated to decrease marginally, as indicated by import performance realized up to November 2016. During January â€“ November 2016, total import of pepper into Japan was 8,060 Mt (4,730 Mt of whole and 3,330 Mt of ground pepper). When compared to import in the same period last year, there was a decrease of around 4%. Malaysia remained the most important source of whole pepper for Japan, supplying 53%, followed by Indonesia 27%. While for ground pepper Indonesia was the top supplier supplying around 42% and followed by Vietnam shipped around 37% of ground pepper.
Feb 10 - Brazil coffee co-op sees tight supplies despite big crop
Brazil's Cooxupé, the world's largest coffee cooperative, forecast tight supplies in the country around May, saying increased domestic demand for arabica beans is diminishing stocks from the record crop produced in 2016. Cooxupé officials said Brazilian coffee processors were buying and using more arabica beans due to the scarcity of robusta coffee. Two years of drought in the top robusta-producing state of Espírito Santo have reduced output to levels last seen in 2004. Click here to read full stories.
Feb 09 - Marex forecasts global coffee deficit in 2017/18 season
Marex Spectron on Wednesday forecast a global coffee deficit of 3.0 million 60-kg bags for the 2017/18 season as production in top grower Brazil declines. The broker estimated there had also been global deficits in the preceding three seasons. Click here to read full stories.
Feb 09 - Brazil's Cooxupé sees 2017 coffee crop below market estimates
Brazil's Cooxupé, the world's largest coffee cooperative, said on Wednesday the country's 2017 coffee crop will miss market expectations due to adverse weather and trees stressed by a record crop last year. Cooxupé's chief trader Lucio Dias told Reuters the cooperative projects Brazil's coffee output at between 43 million and 47 million 60-kg bags, down sharply from last year's51.37 million bags. Click here to read full stories.
Feb 08 - Cocoa futures to rebound as low prices boost demand
Cocoa prices should regain some ground by the end of 2017 following a prolonged slide fuelled by expectations for a global surplus in the current 2016/17 season, a Reuters poll of nine traders and analysts showed on Tuesday. The survey's median forecast for New York cocoa futures prices at the end of the year was $2,400 a tonne, up 17 percent from Monday's close. Click here to read full stories.
Feb 08 - Brazil coffee growers say stocks adequate, oppose robusta imports
Coffee farmers in Brazil on Tuesday told government officials they hold around 4 million bags (60-kg) of robusta beans in stocks and that imports of the beans are not necessary. Farmers and politicians from top robusta-producing state Espirito Santo met Brazil's Agriculture Minister Blairo Maggi in Brasilia on Tuesday to discuss the robusta supply situation. The government is evaluating whether to import as two years of drought have produced smaller-than-normal local harvests. Click here to read full stories.
Feb 08 - Bangladesh tea prices dip on higher supply of poor-grade leaf
Tea prices in Bangladesh fell about 9 percent at the weekly auction on Tuesday owing to higher supplies of inferior grade leaf despite a drop in volume on offer. Bangladesh tea fetched an average of 152.29 taka ($2.50) per kg at the auction, compared with 167.83 taka in the previous sale. Click here to read full stories.
Feb 07 - Raw sugar price rally seen stalling in 2017 as deficit fades
A rally that took raw sugar prices to a more than four-year high in late 2016 is expected to run out of steam this year as Brazil's main producing region looked set for record output that will reduce a world supply deficit, a Reuters poll showed. The deficit will disappear in the upcoming 2017/18 crop year, according to the median estimate from Reuters' poll of 18 traders, analysts and industry experts, as last year's rally in prices raises production expectations. The global market shifted to a deficit last year after half a decade of surplus production. Click here to read full stories.
Feb 07 - Ivory Coast cocoa defaults sap confidence in marketing board
Cocoa exporters and traders said on Monday that a lack of transparency surrounding a wave of export contract defaults in Ivory Coast has shaken their confidence in the top grower's marketing board. The Coffee and Cocoa Council (CCC) last week acknowledged that some exporters, having wrongly speculated that world cocoa prices would extend years-long gains, would default on loss-making contracts. Click here to read full stories.
Feb 07 - Brazil to reassess robusta coffee stocks, minister says
The Brazilian government will make a new evaluation of robusta coffee stocks in the country after farmers complained about a previous assessment, Agriculture Minister Blairo Maggi said on Monday. The government wants to have a reliable estimate of how much robusta coffee is still available in the domestic market before looking at a request by the instant coffee industry to allow imports. Click here to read full stories.
Feb 06 - Elastic band: Chinese speculators ping global rubber prices to 5-year high
First, Chinese speculators came for coking coal and iron ore, catapulting markets into orbit. Now, they're carpetbagging a different commodity, pushing it to its fastest price rise in more than a quarter of a century - rubber. Traders say Chinese investors are punting on global rubber demand surging on revived growth in China stoking the auto sector, allied with hope a President Trump stimulus will stoke the U.S. Click here to read full stories.
Feb 06 - U.S. ethanol producers pump at record levels, policy clouds loom
U.S. ethanol producers pumped out the biofuel at a record pace last week, but higher output belies growing concern in the industry that policy changes in the United States and China could upend demand for their product. The ethanol industry in the United States has grown dramatically over the last decade as the biofuel volumes Washington required oil firms to blend into gasoline and diesel rose toward targets set by Congress in 2007. Demand for ethanol from China, Brazil and Mexico gave added momentum to industry expansion. Click here to read full stories.
Feb 06 - Coffee prices seen headed upward as global deficits loom
Coffee prices will extend gains throughout early 2017 amid bullish forecasts for fundamentals that see demand outstripping supply for two more years, a Reuters poll of 14 traders and analysts showed on Friday. The survey's median forecast saw spot arabica coffee futures prices rising to $1.545 per lb by the end of March, up 5.9 percent from Thursday's settlement. They were seen reaching $1.55 per lb by the end of 2017, up 13.1 percent from the end of 2016. Click here to read full stories.
Feb 06 - Speculators hike bearish cocoa bet to near 5-year high
Speculators brought their bearish stance in cocoa on ICE Futures U.S. to the highest level in nearly five years, as they increased a bullish stance in cotton futures and options in the week to Jan. 31, U.S. government data showed on Friday. The dealers reduced net long stances in arabica coffee and raw sugar futures and options, the Commodity Futures Trading Commission data showed. Click here to read full stories.
Feb 03 - Brazil agriculture minister backs robusta imports despite opposition
Agriculture Minister Blairo Maggi is convinced that Brazil should allow its local coffee processing industry to import robusta beans following a poor harvest but says the move is strongly opposed by growers and the outcome is uncertain. In an interview with Reuters late Monday, Maggi said his ministry will send a positive recommendation regarding robusta imports to other senior departments of President Michel Temer's government, which will make the final decision. Click here to read full stories.
Feb 03 - Ivory Coast has funds to support cocoa sales despite defaults - CCC
Ivory Coast's Coffee and Cocoa Council marketing board has sufficient resources in its reserve fund to support continued cocoa sales despite a wave of defaults and falling world prices, its managing director said on Thursday. The CCC began cancelling cocoa contracts in default this week and informed exporters it planned to resell those volumes. Click here to read full stories.
Feb 03 - In avocado country, Mexicans not afraid of Trump tariff threats
Avocado farmers in the rolling hillsides of Mexico's Michoacan state are not worried for now by U.S. President Donald Trump's threats to tear up a trade deal which could make the favorite snack of Super Bowl viewers more expensive. Americans will chomp through huge amounts of avocados mashed into guacamole during the Super Bowl on Sunday, and 80 percent of those fruits will come from Mexico’s ever-larger expanse of orchards, thanks to a free market created by the North American Free Trade Agreement in 1994. Click here to read full stories.
Feb 03 - Itochu CFO says to exit from cocoa venture with Transmar
Japanese trading house Itochu Corp booked a loss on its investment in cocoa trader and processor Transmar Group in the October to December quarter and will exit from the venture, a senior executive said on Friday. "We will exit from the cocoa venture with Transmar although we will continue the cocoa business through other units," Itochu Chief Financial Officer Tsuyoshi Hachimura told Reuters after an earnings news conference. Click here to read full stories.
Feb 03 - Weekly Pepper Bulletin, Week 30 January - 3 February 2017 (WPB)
- The market showed a mixed response during the week. In India the price decreased since harvest in Kerala and Karnataka is on full swing. Compared to last week, an average of around 3% decrease was recorded in Kochi. In Indonesia, the price of black pepper in Lampung and white pepper in Bangka were reported stable. Similarly for Sarawak black in Kuching was also stable, but for white pepper increased marginally by 1%. FOB price in Indonesia and Malaysia were reported stable. In Sri Lanka, an increase of 2% for black pepper was recorded.
- In Vietnam and China, the market was quiet in view of Chinese new-year holiday mood continues until the end of the week. There was no price reported from Vietnam and China during the week.
Feb 03 - Pepper's Export from Brazil (WPB)
- In the last 44th Session of IPC held in Jakarta, Indonesia, on 08 to 11 August 2016, it was reported that Brazil anticipating to harvest 45,000 Mt of pepper in 2016 crop season. Out of this a volume of around 39,000 Mt was estimated to be shipped from Brazil. Some source reported that real production of pepper in Brazil for the 2016 crop season was not as good as predicted earlier. This was reflected by the export realization achieved in 2016.
- During 2016 export of pepper from Brazil decreased by 7,000 Mt (18%) from 38,000 Mt in 2015 to 31,000 Mt in 2016. In terms of value, Brazil realized export earning from pepper of around US$ 247 million in 2016 as against US$ 348 million in 2015, a decrease of around 29%. It is interesting to note that main market of Brazilian pepper in 2016 was Germany, absorbing 9,250 Mt (30%) of Brazilian pepper exports followed by United States 24%. In 2016 export into USA decreased to only 7,300 Mt as against 12,500 Mt in 2015.
Feb 02 - Ivory Coast cancels defaulted cocoa, fines exporters
Ivory Coast's Coffee and Cocoa Council (CCC) marketing board has begun cancelling cocoa contracts which are in default and plans to resell those volumes, exporters said on Wednesday, in a move that will saddle some companies with heavy penalties. The CCC auctioned the volumes before world prices fell last year and reselling them at current price levels will mean a loss of revenues for the world's top producer. Click here to read full stories.
Feb 02 - S&P Global Platts raises 2017/18 sugar surplus forecast
S&P Global Platts on Wednesday raised its forecast for a projected world sugar surplus in the 2017/18 season to 2.7 million tonnes from a previous projection of 1.2 million. The company said the increase mainly reflected higher output expected in Europe and Brazil as well as significant recoveries in production in India and Thailand. Click here to read full stories.
Feb 01 - Global coffee exports up more than 5 percent in 2016 - ICO
Global coffee exports rose 5.3 percent in the 2016 calendar year and 8.3 percent in the first quarter of the 2016/17 crop year, data from the International Coffee Organization (ICO) showed on Tuesday. Global coffee exports in the 2016 calendar year reached 118.42 million bags, up from 112.47 million bags in 2015, while they climbed to 29.77 million bags in the first three months of the marketing year that started in October. Click here to read full stories.
Feb 01 - Egypt to raise sugar prices at subsidised outlets
Egypt will raise the price of sugar by 14 percent at government outlets starting on Wednesday, a Ministry of Supply official said on Tuesday. Cooking oil will jump to 12 Egyptian pounds ($0.6417) per 800ml bottle from 10 pounds currently and sugar will increase to eight pounds per kilogram from seven. Click here to read full stories.
Feb 01 - Ivory Coast 2016 cashew output dips, new record expected for 2017
Ivory Coast's 2016 cashew output fell to about 650,000 tonnes from a record 702,000 tonnes the previous year, the general manager of national marketing board the Cotton and Cashew Council (CCA) said on Tuesday. However, good weather is expected to boost output in the world's largest exporter of raw cashews to a new record high in 2017, Adama Coulibaly said. Click here to read full stories.
Jan 31 - Ivory Coast unrest makes cocoa grinders rethink investments
Cocoa grinders in Ivory Coast are holding off on new investments after military and social unrest this month, potentially denting government plans to boost processing of the commodity in the world's top grower. Ivory Coast has emerged from a 2002-2011 political crisis as one the world's fastest growing economies, attracting foreign investment into everything from the cocoa industry to breweries and shopping malls. Click here to read full stories.
Jan 31 - TOCOM asks brokers to detail customers' rubber futures positions after price surge
The Tokyo Commodity Exchange (TOCOM) said on Tuesday it has requested its member brokers to submit reports detailing their customers' positions on rubber futures contracts after prices rose sharply over the past weeks. TOCOM issued the notice on Monday and members are required to respond by Wednesday, a spokesman told Reuters by phone. Click here to read full stories.
Jan 31 - Thai rubber producers say can maintain exports despite floods
Thai rubber exporters say they have enough of the commodity in stockpiles to ensure only minimal disruption to scheduled shipments in the wake of deadly floods in key growing regions. Global rubber prices this week soared to five-year highs on worries over supply following floods that started in December, swamping plantations in the world's top producer at the height of the tapping season. Click here to read full stories.
Jan 31 - Brazil No 1 instant coffee exporter turns down new orders
Brazil's Cia Cacique de Café Solúvel SA, the country's number one exporter of instant coffee, is refraining from closing export deals for future delivery due to uncertainty over robusta coffee supplies, and fears it will lose market share to rivals in other countries. Cacique's export sales director Pedro Guimarães Fernandes told Reuters on Monday that Brazil's robusta supply crisis is 'very serious' and that without an opening to imports soluble shipments will start to plunge soon. Click here to read full stories.
Jan 31 - Ghana cocoa buying dips in first 16 weeks of season
Cocoa purchases declared to Ghana's industry regulator following the first 16 weeks of the 2016/17 season stood at 611,763 tonnes, Cocobod data seen by Reuters on Monday showed. This marked a dip from 621,661 tonnes of beans bought in the world's number two cocoa producer over the same period last season. Click here to read full stories.
Jan 30 - Robusta Rises to an All-Time High (Dow Jones)
Bets on rising robusta coffee prices edge higher to a historical high in the week to Tuesday, according to market data released by ICE. The funds' net-long position grew by 1.8% in that period to 47,058 lots, the fourth consecutive week the position has increased. On the London futures market, the price fell by 0.4% in that period. In New York, the net-long position on arabica coffee prices rose by 26% in that period to 25,281 lots.
Jan 30 - Oversupply Concerns Weigh on Cocoa Prices (Dow Jones)
Larger than expected stockpiles and expectations of a large West African crop continued to weigh on London-traded cocoa prices on Monday, pushing the bean down to a fresh 3 1/2 year low. Following the London close, cocoa was down 0.5% for the day at GBP1,688 per metric ton. On Thursday evening, a survey released by the International Cocoa Organization said stock draw downs for the previous season were only 13,000 tons, far lower than previously expected, suggesting that supplies of the bean are ample.
Jan 30 - Cocoa Bets Jump Higher (Dow Jones)
Bearish bets on London-traded cocoa prices jump higher in the week to Tuesday, according to ICE market data. Funds' net-short position expanded for the third consecutive week, to 17,678 lots, in that period. On the market, prices rose 2.6% in that period, as confusion following mutinies and port backlogs in Ivory Coast helped prices push higher. In New York, the net-short position on the dollar-traded cocoa market rose by 21% to 24,593 lots in that period.
Jan 30 - Uganda Coffee Exports Extending Rising Streak (Dow Jones)
Uganda's coffee exports continue to recover from output losses suffered last season, with exports having now increased for three straight months since the start of the 2016-17 season in October. Exports are now at 1 million tons - the highest level in five years - according to data from state regulator UCDA. The recovery of exports from Africa's number one exporter of the beans offers some relief amid concerns about supplies from world's top grower, Brazil, where main coffee growing regions have been ravaged by drought. Uganda's Arabica beans are aided by a high yielding harvest cycle, while Robustas are benefiting from favourable weather in the Northern hemisphere, "where the main harvest is peaking", UCDA says.
Jan 30 - Brazil's Clealco in talks to renegotiate debt, eyes sale -sources
Clealco Açúcar e Alcool SA is in talks with banks to renegotiate terms of about 1.5 billion reais ($473 million) in loans, the latest Brazilian sugar firm restructuring operations amid a heavy debt burden, three people with knowledge of the situation said. Shareholders of Clealco are considering resuming a process to look for a buyer, which could take place simultaneously with the loan renegotiation plan, said the first person, who is not allowed to discuss the plans publicly. Click here to read full stories.
Jan 30 - Speculators hike bearish cocoa stance, cut bullish cotton bet - CFTC
Speculators boosted a bearish stance in cocoa on ICE Futures U.S. to the highest since June 2012, as they continued to reduce a record bullish stance in cotton futures and options in the week to Jan. 24, U.S. government data showed on Friday. The dealers raised their net long stance in arabica coffee to a near three-month high and also upped a bullish position in raw sugar futures and options, theCommodity Futures Trading Commission data showed. Click here to read full stories.
Jan 30 - Ivory Coast exporters to default on 80,000 T of cocoa contracts
Members of an Ivory Coast cocoa exporters association will default on around 80,000 tonnes of export contracts after they failed to lock in prices with counterparties amid speculation global prices would rise, association officials said on Friday. "Our defaults aren't more than 80,000 tonnes. It's around there," Raymond Koffi - president of the GIE-PMIEX-COOPEX exporter group, which includes 16 local export companies - told Reuters. Click here to read full stories.
Jan 27 - Cocoa Prices Hit Lowest Level Since 2013 (Dow Jones)
London-traded cocoa prices are trading at a three and a half year low on Friday morning, after a survey of traders and exporters said cocoa stocks in the last season fell far less than expected, implying the overall supply of beans is larger than initially believed. The front-month March contract was down 1.40% at GBP1,696 per metric ton around 1200 GMT. A survey of traders and analysts held by the International Cocoa Organization and released late Thursday concluded that cocoa stockpiles declined by just 13,000 tons on-year in the 2015-16 season, which ended in September, far lower than the official ICCO estimate that stocks declined by 150,000 tons. That official estimate is still in place, and the ICCO said it believes the true number will be higher than 13,000 tons. However, the official figure will be revised in February with the next release of the ICCO's statistical review.
Jan 27 - Tokyo Benchmark Rubber Futures Rally 6%; Highest Close in 4 Years (Dow Jones)
The Tokyo benchmark rubber futures contract rallied 6.0% during Friday's session, hitting its highest close since February 2013. Prices were supported by moves higher in the USD/JPY, which makes the yen-denominated commodity nominally cheaper. Rubber prices continue to rally, driven by concerns that supplies in the market have become tighter due to a fall in production and ongoing demand in China. The Tocom benchmark 6-month contract ended up Y331.3 per kilogram.
Jan 27 - Weekly Pepper Bulletin, Week 23-27 Jan 2017 (WPB)
Pepper market at sources again showed a mixed response, with limited activity. In Sarawak, local price increased, while in India and Sri Lanka decreased. A marginal decrease in India maybe influenced by the situation where pepper harvest in Kerala and Karnataka State which is now in upswing trend. In Sarawak, local price of pepper stood at the level of MYR 21 and MYR 33 per Kg respectively for black and white pepper, increased from MYR 18.5 and MYR 30 per Kg recorded in the last week. A marginal increase was also recorded in domestic market in Lampung and Bangka. While FOB price, remained stable at these markets. In Vietnam and China, the market was quiet, in view of anticipating Lunar / Chinese New Year celebration.
Jan 27 - Pepper's Export from Vietnam (WPB)
During 2016, Vietnam is estimated to harvest 170,000 Mt of pepper, increased from 122,000 Mt in 2015. Along with pepper imported from neighbouring countries, like Cambodia and Indonesia, Vietnam is estimated to have exported minimum 175,000 Mt in 2016. This estimation seems to be easily achieved, since export up to November has almost touched 170,000 Mt as shown in the flowing tables. During January â€“ November 2016, Vietnam has exported 169,200 Mt valued at US$ 1.36 billion, an increase of 34% in quantity and 13% in value from 126,080 Mt worth US$ 1.2 billion in the same period of 2015. Although pepper prices went down in 2016, Vietnam continued to enjoy excellent benefit from pepper industry, even better than previous year. During 2016 Vietnam held nearly 60% of global pepper market, followed by Indonesia, Brazil, India and Malaysia at much lower levels.
Jan 27 - ICCO survey points to smaller global 2015-16 cocoa deficit
World cocoa stocks in 2015-16 were higher than expected and point to a smaller deficit than forecast, an annual survey conducted by the International Cocoa Organization (ICCO) Expert Working Group on Stocks showed on Thursday. The Expert Working Group on Stocks' (EWGS) review of the survey also showed a lower estimate for global stocks at the end of September 2015, pegging them at 1.49 million tonnes, down from the ICCO's statistically derived estimate of 1.597 million tonnes. Click here to read full stories.
Jan 26 - India likely to need higher sugar imports, says leading refiner
India's sugar production is likely to be lower than government estimates this season, raising the possibility of higher imports by the world's biggest consumer of the sweetener, the chief executive of leading Indian refiner Shree Renuka Sugars told Reuters. The government has forecast production of 22.5 million tonnes for the 2016/17 season and lower output could force New Delhi to cut or axe the 40 percent import tax to facilitate cheaper purchases from the likes of Brazil, Thailand and Australia. Click here to read full stories.
Jan 26 - El Niño may return in 2017 - Braun
It is time to say goodbye to La Niña, and possibly hello to El Niño again later in the year. Ever since the record-setting El Niño of late 2015 started winding down early last year, commodity markets have been fully focused on the La Niña that forecasters had predicted would dominate late 2016 and potentially much of 2017. The El Niño-Southern Oscillation, or ENSO, is one of the most followed global climatic features, as its cool phase La Niña and warm phase El Niño have somewhat contrasting effects on weather patterns worldwide. Click here to read full stories.
Jan 26 - China commodity exchange to simulate sugar options trading on Feb.6
China's Zhengzhou Commodity Exchange will launch simulated trading of white sugar options on Feb. 6, it said on Thursday, in preparation for the formal launch of the new derivatives. The exchange has not yet announced when it will start trading sugar options for real. China's securities regulator approved the launch of both sugar and soymeal options in December, the first agricultural derivatives products to be offered in the world's biggest commodity market. Click here to read full stories.
Jan 25 - Cocoa backs up at Ivory Coast ports, exporters blame speculators
Cocoa is backing up at Ivory Coast's warehouses and ports, international exporters told Reuters, saying that domestic companies have been securing export rights at auction for beans they can no longer afford. Three exporters estimated that 15,000 to 20,000 tonnes of cocoa were in trucks outside the top grower's ports of Abidjan and San Pedro. Another 30,000 to 40,000 tonnes, they said, were in merchants' warehouses in the interior waiting for buyers. Click here to read full stories.
Jan 25 - Glencore eyes more Brazil mills after recent acquisition - sources
Swiss commodities trader Glencore Plc is considering additional sugar and ethanol mills takeovers in Brazil, where it recently bought a second plant, to ramp up operations in the world's No. 1 sugar producer, three people familiar with the plan said on Tuesday. According to the first source, who asked for anonymity because the plans remain private, Glencore is seeking to add another mill to the portfolio of two it already has in order to expand its production cluster in Sao Paulo state. The person declined to elaborate on potential targets. Click here to read full stories.
Jan 25 - Ghana mulls liberalization of cocoa sector, output boost - government
Ghana's new government is pondering full liberalization of the cocoa sector in renewed efforts to significantly lift production above 1 million tonnes yearly, a minister designate said on Tuesday. The world's second largest cocoa producer with an average annual output of around 750,000 tonnes, only permits internal marketing of its beans with state-run regulator Cocobod as sole exporter. Click here to read full stories.
Jan 24 - CME Group suspends trading in European cocoa contracts
CME Group Inc will suspend trading in all CME Europe cocoa contracts starting with the May 2017 contract, the company said on Monday. The CME euro-denominated cocoa contract was launched on March 30, 2015, but volumes and open interest remained low and the new market never mounted a serious challenge to the dominance of the IntercontinentalExchange, which operates both of the most actively traded markets in the commodity. Click here to read full stories.
Jan 24 - Cameroon cocoa farm-gate prices drop on pesticide ban, instability
Cameroonian farm-gate cocoa prices dropped in January by at least 10 percent from the previous month in most regions due to a government ban on a popular pesticide and political instability in the southwest, farmers said on Monday. Prices ranged from 750 CFA francs ($1.23) per kg of beans in one southwestern district to 1,000 CFA francs in parts of the central region, they said -- below the National Cocoa and Coffee Board's (NCCB) indicative price of 1,050 CFA francs/kg. Click here to read full stories.
Jan 24 - Ivory Coast rain improves outlook for cocoa mid-crop
Heavy rain last week in most of Ivory Coast's main cocoa-growing regions came as a welcome surprise during the dry season and will boost the April-to-September cocoa mid-crop, farmers said on Monday. Downpours are rare during the November-to-March dry season in the world's top cocoa producer. Farmers said rain would boost growth of flowers and pods already on trees for the mid-crop. Click here to read full stories.
Jan 23 - Thai floods harm key region for world's rubber
First came drought, then came floods. Rubber farmers in Thailand's south are counting the cost of extreme weather in the world's top growing region. "From afar the trees look withered," said 67-year-old Reang Onnuan, a lifelong rubber grower, looking out at the sea of water from which her trees protruded. Click here to read full stories.
Jan 23 - China 2016 sugar imports lowest in five years - customs
China imported 220,000 tonnes of sugar in December, down 56.7 percent compared with the same month a year earlier, customs data showed on Monday, after a spike in global prices early in October dented purchasing from overseas. Full-year purchases by the world's top buyer fell 36.8 percent to 3.06 million tonnes, the lowest level since 2011, when its imports were just under 3 million tonnes. Click here to read full stories.
Jan 20 - Colombian 2017 coffee output could hit 24-yr high-federation head
Colombia could produce 14.5 million 60-kg bags of coffee this year, the highest output in more than two decades, the head of the country's growers' federation said on Thursday, as it pushes productivity and fertilization improvements on farms. Coffee growers in the Andean nation, the world's top producer of high-quality washed arabica, reached output of 14.2 million bags, the previous high, last year despite drought and a truckers strike that stymied exports. If the country reaches output of 14.5 million 60-kg bags it would be the highest in 24 years. Click here to read full stories.
Jan 20 - N. American 4th-qtr cocoa grind falls to 4-1/2-year low
North American cocoa grindings fell below expectations to a 4-1/2-year low in the fourth quarter of 2016, but were up slightly for the full year, data from the National Confectioners Association (NCA) showed on Thursday. Cocoa processors in the United States, Canada and Mexico reported grinding 117,588 tonnes of beans in the period from October to December, down 1.1 percent from the same period a year earlier, NCA data showed. Click here to read full stories.
Jan 20 - India Government Dismisses Talk It Will Cut Sugar Import Tax (Dow Jones)
The Indian government has denied market speculation of trimming the import tax on overseas sugar purchases to encourage imports of the sweetener. "We have no plans to reduce the import duty at this point since we will have sufficient stocks," says a government official, who did not wish to be named. The import tax on sugar at present is 40%, which means that no imports are taking place. India's sugar production has dropped 5% to 10.4 million tons till January 15 in the current season that started in October last year, the Indian Sugar Mills Association, an industry body said this week. India's overall production in 2016/17 is likely to fall to 22 million metric tons, down 4.3% from an earlier estimate. The Indian government says it has enough sugar stocks to cater to local demand. The price of sugar has jumped almost 10% in a month.
Jan 20 - Tocom Closes Lower on Shanghai Rubber Weakness (Dow Jones)
Benchmark Tokyo rubber future prices end sharply lower Friday, pulled down by weaker Shanghai rubber futures. "The Shanghai market fell on concerns of trade friction between the United States and China," says Kaname Gokon of Okato Shoji in Tokyo. Trading was mostly "tepid" as investors took a cautious approach ahead of U.S. President-elect Donald Trump's inaugural speech later today, Gokon adds. Profit-taking activities are expected ahead of the Lunar New Year holidays next week, he says. The Tokyo Commodity Exchange rubber contract for June delivery ends 13.2 yen lower at Y288.3 (US$2.51) per kilogram.
Jan 20 - Support Break Sent Sugar Futures Slumping (Dow Jones)
Thursday's late slump in US sugar futures came on huge volumes, "with some 35‑40K March contracts sold inside the last hour," notes Commonwealth Bank of Australia. It believes the most-logical explanation is the shrinking premium of the March contract compared with May, so after March broke support a wave of selling followed. "The scale of the move means others will have been dragged into move." CBA adds there are now signals that modest ongoing tightness this quarter is likely to be resolved. ICE March raw sugar fell 3.8% to 20.18c/pound.
Jan 20 - Weekly Pepper Bulletin Week 16-20 January 2017 (WPB)
- Domestic market of pepper showed a mixed response during the week. In Vietnam, local price of pepper stood at the level of VND 128,500 pr Kg for black and VND 177,500 for white throughout the week. When compared to previous average price however, the price of black pepper decreased by 3%. In the case of white pepper, the price remained stable. Marginal decreases were also recorded in Lampung, Sri Lanka and India; while in Sarawak local price of black pepper increased by 6% and for white pepper 4%.
- Except in Vietnam, FOB price of pepper at most origins were recorded stable. In Vietnam fob rice of black pepper decreased by 3%; while for white pepper remained stable.
Jan 20 - Pepper's Import by South Korea (WPB)
- Import of pepper into South Korea increased year by year in the last five years from 4,300 Mt (4,000 Mt of whole pepper and 300 Mt of ground pepper) in 2011 to 5,400 Mt (4,975 Mt of whole pepper and 425 Mt of ground pepper) in 2015, recording an increase of 25% or 5% per year.
- It is expected that import of pepper by South Korea in 2016 will be remaining high as indicated by import performance in the last eleven months as shown in the following table and chart. During January-November 2016 South Korea imported 5,160 Mt of pepper (4,745 Mt of whole and 415 Mt of ground pepper), as against 5,220 Mt in 2015. Vietnam was the main source of pepper for South Korea, supplying more than 75%, replacing traditional supplier of Malaysia, supplying only 16% during January to November 2016.
Jan 19 - Ivory Coast's CCC denies it plans to cancel cocoa contracts
Ivory Coast's Coffee and Cocoa Council (CCC) marketing board denied on Wednesday that it plans to cancel around 300,000 tonnes of cocoa contracts on the verge of default and resell them.Reuters reported on the plan, revealed by a CCC official and finance ministry source, on Tuesday. "The Coffee and Cocoa Council would like to absolutely deny this information, which lacks any founding," the CCC said in a statement. Click here to read full stories.
Jan 19 - Thailand set to sell 98,000 T of rubber from state stockpiles
Thailand will sell 98,000 tonnes of rubber from state stockpiles in the first state auction of the year, the country's rubber authority said on Thursday.The sale was worth over 6.64 billion baht ($187.57 million), said Titus Suksaard, governor of the Rubber Authority of Thailand. Click here to read full stories.
Jan 19 - Tokyo Rubber Futures Rise More on Worries (Dow Jones)
Benchmark Tokyo rubber futures continue their upward march amid ongoing concerns about weak supplies from top-producer Thailand on flooding there. "The market has certainly got a boost from the floods, but a greater risk-on mood among investors has led to the rise in prices" today, says Kaname Gokon of the Okato Shoji brokerage in Tokyo. The Tokyo Commodity Exchange rubber contract for June delivery rose 0.2% to Y301.5/kilogram.
Jan 19 - India Sugar Output Less So Far This Season (Dow Jones)
India's sugar production has dropped 5% so far this season, hurt by reduced output in top-producing states, according to the Indian Sugar Mills Association. In the western state of Maharashtra, production has slumped almost 30% while in the south, it's down nearly 10% for Karnataka. India's overall production this season, which runs through September, is likely to fall to 22M metric tons, down 4.3% from an earlier estimate. The Indian government says it has enough sugar inventories to cater to local demand.
Jan 19 - India Coffee Growers Positive on Rising Prices (Dow Jones)
Indian coffee growers are upbeat due to higher coffee prices as supplies tighten amid falling production both locally and overseas. Bean prices there are up at least 10% since early December, says Bose Mandanna, a coffee trader in the south Indian state of Karnataka. India's state-run Coffee Board estimates total output will drop 9% from last year's record. That as a potential double-digit digit looms in Brazil.
Jan 18 - Ivory Coast to cancel 300,000 tonnes of cocoa contracts - sources
Ivory Coast's Coffee and Cocoa Council (CCC) marketing board plans to cancel around 300,000 tonnes of cocoa export contracts on the verge of default and resell them, CCC and finance ministry sources said on Tuesday. "The Council analysed all the options and possibilities but decided to cancel around 300,000 tonnes of contract that are potentially in default and put them back on the market as international contracts," the finance ministry source said. Click here to read full stories.
Jan 18 - New Zealand choppers save cherries for China in Lunar New Year rush
New Zealand cherry producers are flying helicopters low over their orchards to dry off raindrops and protect thousands of tonnes of their product headed to Asia to feed rapidly growing demand from Chinese New Year revellers. China has grown to become the second largest destination for New Zealand cherries after Taiwan in the past seven years. Together they take about 60 percent of cherry exports, which were worth about NZ$43 million ($31 million) last year. Click here to read full stories.
Jan 18 - Thai Floods Continue to Lift Tokyo Rubber (Dow Jones)
Benchmark Tokyo rubber futures rebound from early softness to finish higher amid ongoing supply concerns stocked by Thailand's flooding. Support also came from stronger Shanghai futures and higher oil prices. The Tokyo Commodity Exchange rubber contract for June delivery rose 0.4% to Y300.9/kilogram.
- Tokyo rubber prices were slightly lower amid some likely profit-taking after big gains to start 2017 amid supply concerns. But the market today is likely to be supported by slide gains so far today in Shanghai futures. The Tocom benchmark 6-month contract is down 0.6% at Y298/kilogram.
Jan 18 - India Sugar Prices Jump as Demand Rebounds (Dow Jones)
India's sugar prices have climbed more than 10% the past month amid improved consumer demand with the easing of the cash crisis there. "Prices have recovered following brisk buying by retailers and consumers," a sugar trader notes. Then there's concerns of a production shortfall in top-producing Maharashtra state; sugar mills there have already put on hold crushing operations due to lower cane supplies. As a result, India's 2016-7 sugar production is likely to fall to 22M metric tons, down 4.3% from an earlier estimate. The Indian government has ruled out any move to remove the import tax, saying there are sufficient supplies to meet local demand. Shares of major sugar companies are down at least 1% today.
Jan 17 - Dry winds in Ivory Coast raise concerns for cocoa crops
A lack of rainfall across most of Ivory Coast's main cocoa regions combined with Harmattan winds have raised concerns about the quality of new crops, farmers said on Monday.Ivory Coast is in the dry season which runs from mid-November to March, when downpours are scarce. Farmers said they are shifting their focus from the main crop to the April-to-September mid-crop.Click here to read full stories.
Jan 17 - Sarjanovic steps down as CEO of sugar merchant Alvean
Geneva-based sugar merchant Alvean said on Monday that Ivo Sarjanovic was stepping down as chief executive officer. Cargill and Copesucar established the joint venture company in 2014, forming one of the world's largest sugar traders.Click here to read full stories.
Jan 17 - Thai sugar output to fall 3.1 pct in 2016/17, exports lower - official
Sugar output for 2016/2017 in Thailand, second-biggest exporter of the sweetener, is expected to fall 3.1 percent due to a widespread drought last year that forced some cane farmers to switch crops, a government agency said on Tuesday. "For 2016/2017 we should get between 9.3 million to 9.4 million tonnes of sugar, lower than 2015/2016 because of drought and the bad price of sugar," Boontin Korsiri, an official at the Office of the Cane and Sugar Board, told Reuters.Click here to read full stories.
Jan 17 - Indonesia's Sugar Imports Seen Growing Further (Dow Jones)
Indonesia will cement its place as the world's second-largest importer of sugar the next 5 years as the country grows less of its own product and consumption continues to increase, says BMI Research. It notes farmers are moving to more-profitable crops such as rice and corn while some areas which have traditionally grown sugar are turned into residential or industrial areas. Set to benefit from even-more Indonesia sugar imports includes Thailand--the country's largest supplier--Brazil and Australia.
Jan 16 - Cross-Border Nigerian Buyers Lift Southwest Cameroon Cocoa Prices(Dow Jones)
Cameroon-Cameroon's cocoa prices rose further this week as Nigerian traders made purchases in the country's Southwest Region, farmers and traders there said Monday.
A kilogram of the beans sold for 1,000 to 1,100 Central African francs, ($1.61 to $1.77), up 14% from XAF850-XAF1,000 traders paid for the crop last week, traders and farmers said.
Sales were made in the big cocoa-growing towns of Mamfe, Eyumojock and Kampong. All three flank Nigeria, easing transportation of cocoa beans by road and the Manyu River.
"Nigerian traders are offering better prices than our Cameroonian countrymen," said cocoa trader James Oben in Mamfe, who said he had sold a metric ton of cocoa beans to a Nigerian buyer earlier Monday at XAF1,100/kg.
Cameroonian traders are also motivated to sell their harvests to Nigerian traders because bad roads make it costly to move produce to the port of Douala.
Jan 16 - Asia Rubber Prices Keep Rising as Rain Persists (Dow Jones)
Benchmark Tokyo rubber futures end sharply higher amid gains in Shanghai as supply concerns in major producer Thailand persist amid flooding there. The country is the world's biggest rubber producer and exporter, and supply concerns have let to surging prices. The Tokyo Commodity Exchange rubber contract for June delivery rose 3.9% to Y305/kilogram.
Rubber prices jump sharply again as rains continue to fall in Thailand, increasing concerns that supply will tighten as production there continues to be hampered by wet weather and floods. The Rubber Authority of Thailand preliminarily put out an estimate that flooding is likely to shave out at least 360K metric tons from the country's expected natural-rubber output of 4.4M for 2017. The Tocom benchmark 6-month contract is up 3.4% at Y303.4/kilogram, hitting fresh 4-year highs.
Jan 16 - Major 2017 Asia Sugar-Import Demand Anticipated (Dow Jones)
Asia sugar-import demand will be particularly strong this year after 2 years of local production declines and a partial recovery in the 2016-7 season, says BMI Research. "The stronger Asian demand will contribute significantly to global-market tightness in the short term as the region is the world's largest consumer." It also reminds that China's sugar production is under pressure amid low prices, declining output and increasing production costs. "We forecast the country's deficit to be 10.1 million metric tons in 2021, compared with the 3.9 million metric tons in the previous five years."
Jan 13 - USDA trims forecast for 2016/17 domestic sugar supplies
The U.S. Department of Agriculture (USDA) on Thursday slightly lowered its outlook for domestic sugar supplies on lower cane production in Louisiana.The USDA pegged the closely watched stocks-to-use ratio stood at 15.4, down from 15.7 last month and also lower than 17.0 in the previous marketing year. The outlook, little-changed from December's, still puts total U.S. supplies above the 13.5 targeted by the U.S. government to keep the market in balance.Click here to read full stories.
Jan 13 - Storms ease California drought as reservoirs fill up
Several months of wet weather have dramatically eased California's years-long drought, replenishing reservoirs and parched aquifers and forcing state water officials to switch - at least temporarily - from managing shortages to avoiding floods. With rain continuing to fall following a deluge that brought 20 inches (50 cm) of precipitation to some areas this week, the snowpack in the Sierra Nevada mountains - crucial for storing water needed in the state's long, hot summers - is deeper and wetter than normal. Reservoirs were well above normal levels, state and federal drought experts said on Thursday.Click here to read full stories.
Jan 13 - U.S. farmers ask Trump to stay the course on Cuba
Dozens of U.S. farm and agri-business groups on Thursday urged President-elect Donald Trump to build upon progress made by the Obama administration in relations with Cuba, calling trade with the former Cold War foe particularly important at a time of a severe downturn in farm incomes.The agricultural trade groups stated their views in a letter sent to Trump, who is to be inaugurated on Jan. 20.Click here to read full stories.
Jan 13 - World food prices fall in 2016 for fifth straight year - UN FAO
World food prices fell for a fifth straight year in 2016 as losses in cereals, meat and dairy outweighed rises in sugar and vegetable oils, the United Nations food agency said on Thursday.Prices remained stable in December from the month before, according to the Food and Agriculture Organization's (FAO) main food price index, which has edged up steadily after hitting a seven-year low in January.Click here to read full stories.
Jan 13 - Cadbury owner Mondelez raises some prices on weak pound, higher cocoa cost
Cadbury chocolate owner Mondelez International said it is taking selective price increases across its brands, as it grapples with higher commodity costs and a weaker British pound.Mondelez in November attracted consumer criticism when it changed the shape of its Toblerone bars, putting more space between its distinctive jagged peaks, in order to recoup some higher costs.Click here to read full stories.
Jan 13 - ANRPC Rubber Production Likely to Rise 4.0% in 2017 (Dow Jones)
Rubber production from members of the Association of Natural Rubber Producing Countries, which accounts for 90% of global output, is expected to rise 4.0% in 2017 to 11.2 million metric tons, according to the association's quarterly report. "Global supply of natural rubber during 2017 will be short of demand by 350,000 metric tons." This will likely support rubber prices as recent concerns about availability has driven up prices of rubber. ANRPC notes that floods in Thailand at the moment mean the world's largest rubber producer is expected to produce just 4.381 million tons of rubber in 2017, down from a previous forecast of 4.741 million tons.
Jan 13 - Thailand Flooding Increases Rubber Speculation (Dow Jones)
The flooding in Thailand has had a very-strong influence in boosting speculative trading of natural rubber on both the Shanghai Futures Exchange and the TOCOM, says Prachaya Jumpasut at industry consultancy Rubber Economist. "It is not the fundamentals or shortage in the rubber market but the nominal factors of speculation, currency, etc. which have caused the recent increase in rubber prices." After hitting near-4-year highs yesterday, the Tocom benchmark 6-month contract is down 0.6% at Y297/kilogram.
Jan 13 - India Sugar Prices Hit 7-Year High (Dow Jones)
Sugar prices in India -- the world's second-biggest producer behind Brazil -- touched a seven-year high this week, aided by improved demand and dwindling supplies. India's sugar production in the October 2016-September 2017 period will likely fall to 22 million metric tons, down 4.3% from an earlier estimate, as mills in the country's main producing Maharashtra state are closing early due to cane shortage, analysts at Angel Commodities brokerage say in a report. Sugar production in Maharashtra will likely fall 40% to 5 million tons this season, which started in October. The Indian government has said there are sufficient stocks to cater to local demand and has ruled out any move to remove import taxes. Shares of Dhampur Sugar Mills Ltd are up 1%, while Mawana Sugars Ltd gain 1.5% in early trade.
Jan 12 - Global 2016/17 arabica coffee output to reach record - ICO
Global arabica production could reach a record in 2016/17 but total coffee consumption is on track to exceed output for the third straight year, the International Coffee Organization (ICO) said on Wednesday.Global robusta was forecast to fall 6 percent as Brazil's crop remained hampered by drought, the ICO said in its monthly newsletter. Click here to read full stories.
Jan 12 - Cocoa Prices Set to Tread Water for a While (Dow Jones)
BMI Research says global cocoa prices will likely trade sideways in 1H after late 2016's slide amid improved fundamentals and bearish sentiment. "Although a good 2016-7 West African season will improve global supply over 2017, we believe this is already priced in at spot levels of GBP1798/metric ton and see limited room for further downside over the coming months." It sees prices gradually trending higher as the year progresses and says the market will remain balanced until recording a larger deficit in 2021.
Jan 12 - India Sugar Prices Escalate on Supply Worries; Shares Slip (Dow Jones)
India's sugar prices have jumped over 10% in a month over concerns of a fall in production from back-to-back droughts in the top-growing state, Maharashtra. Production in 2016/17 is likely to fall to 22 million metric tons, down 4.3% from an earlier estimate, as mills in Maharashtra close early due to cane shortage, analysts at Angel Commodities brokerage said this week. The Indian government for now has ruled out pruning the tax on sugar imports, currently 40%, saying stocks are adequate. No sugar is being imported. Shares of major sugar companies edge lower in early trade -- Mawana Sugars (523371.BY) down 2%, Shree Renuka Sugars (532670.BY) 0.5% and Dhampur Sugar Mills (500119.BY) 1%.
Jan 10 - Heavy rains trigger evacuations in California and Nevada
Heavy rains and flooding along rivers forced the evacuation of thousands of people in a California wine making region and an area of Nevada east of Lake Tahoe on Monday, officials said, with more storms on the way. Regions of California and Nevada, two states which have suffered from drought for years, were walloped by storms over the past week from a weather system called the "Pineapple Express" that sent moisture streaming from Hawaii. Click here to read full stories.
Jan 10 - Thai Flooding Impact Seen as Limited (Dow Jones)
Thailand's rubber prices are expected to stage a short-term rise due to ongoing heavy flooding in the country's south, which is a major rubber growing area. Tocom 6-month benchmark futures jumped 4.4% today and the Thai Agriculture Ministry has reported the inundation has damaged around 4.6% of the country's total rubber-growing area. Thailand's Joint Standing Committee on Commerce, Industry and Banking has predicted the damage-related costs shouldn't top THB15B ($421.6M), or about 0.1% of GDP.
Jan 10 - Tokyo Rubber Futures Helped by China, Thailand (Dow Jones)
Tokyo rubber futures jumped 4.4% amid stronger Shanghai futures and concerns about weak supply from Thailand in the wake of serious floods there. This as improved demand from automobile companies in China has created a positive sentiment. Prices are likely to stay firmer in the near-future, analysts say. June TCE futures rose to Y279.4/kilogram.
Jan 09 - Speculators raise bullish ICE raw sugar, cotton bets
Speculators upped their bullish stance in raw sugar for the first time in four weeks in the week to Jan. 3 as they raised their bullish bet in cotton contracts back toward last month's record highs, U.S. government data showed on Friday.The traders cut their net long position in arabica coffee to the lowest since mid-June and slightly reduced a bearish stance in cocoa futures and options on ICE Futures U.S., the Commodity Futures Trading Commission data showed. Click here to read full stories.
Jan 09 - Thai floods kill 21 and hit rubber production
Widespread flooding in Thailand's south has killed 21 people, hit rubber production in the region and shut down infrastructure, officials said on Monday, as the military government increased aid to flood-affected areas.Thailand's wet season usually ends in late November and heavy rain and flooding are rare in January. Unseasonably heavy rain has hit 12 out of 67 provinces, officials said. Click here to read full stories.
Jan 06 - India to produce less sugar than expected as drought wilts cane crop
India's sugar production in 2016/17 is likely to fall to 22 million tonnes, down 4.3 percent from an earlier estimate, as mills in its key producing state are closing early due to a cane shortage, industry officials told Reuters.A drop in production below India's consumption of around 25 million tonnes could lift local prices and prompt the world's second-biggest consumer to allow duty-free imports of the sweetener, supporting global prices that are trading near their highest level in 1-1/2 months. Click here to read full stories.
Jan 05 - Top Glove Keeps Having to Raise Prices (Dow Jones)
Malaysia's Top Glove has raised average selling prices of natural rubber gloves 4 times since September, partly due to higher natural rubber latex prices. The raw material makes up 48% of the company's cost to produce those gloves, and Executive Director Lim Cheong Guan says the latest changes were 3-5% increases. Founder and Executive Chairman Lim Wee Chai notes natural rubber prices have doubled the past year, and if they rise furth er "we have to increase the selling price." But if the dollar keeps rising, "we will reduce the selling price." Top Glove is the world's largest rubber-glove maker by volume.
Jan 05 - SGX Rubber Volumes More Than Doubled in 2016 (Dow Jones)
Growth last year for Sicom SGX rubber futures came on the back of higher participation from financial traders, which in turn led to deeper liquidity and allowed physical traders to hedge in larger sizes and with reduced slippage costs, says the SGX. Volume more than doubled to 7.1M tons. The exchange adds increased market volatility also brought new participants in.
Jan 05 - Transmar's U.S. cocoa unit files for bankruptcy
The U.S. unit of Transmar Group Ltd has filed for bankruptcy protection just weeks after the parent company's European operation declared insolvency following "unfavorable" cocoa contracts and British pound fluctuations, court filings showed. Transmar Commodity Group Ltd, which sells cocoa products to major chocolate makers including Hershey Co and Nestle, voluntarily filed Chapter 11 bankruptcy to the Southern District of New York United States Bankruptcy Court on Dec. 31. Click here to read full stories.
Jan 04 - India sugar mills shut early as drought hits cane crop - trade body
More than two dozen mills in India's top sugar producing western state of Maharashtra have stopped crushing due to cane shortage while many more mills are likely to shut before February end, a producers' body said on Tuesday. Sugar mills in Maharashtra typically operate between November to April, but this year cane supplies have fallen due to back-to-back droughts. Click here to read full stories.
Jan 04 - Vietnam coffee prices stable in dull post-holiday market
Vietnamese coffee prices remained stable as the market continued to soak in the holiday spirit, leading to a subdued first trading day in the new year, traders said on Tuesday. Traders quoted robusta grade 2, 5 pct black and broken at $60-$70 per tonne below the ICE March contract, same as a week ago, while bids were heard at $70-$80 a tonne. Click here to read full stories.
Jan 03 - Weather good for Ivory Coast mid crop, despite price worries
Favourable weather in Ivory Coast's main cocoa regions bode well for the April-September mid-crop harvest, farmers said, even though low international prices continued to dent demand.The Harmattan, a northerly wind that blows dust off the Sahara between December and March, damaging crops to the south, so far remained mild, farmers said. Last season, strong winds caused severe damage. Click here to read full stories.
Jan 03 - Egypt's GASC seeks 50,000 tonnes of raw sugar
Egypt's main state buyer, the General Authority for Supply Commodities (GASC), said on Saturday it was seeking at least 50,000 tonnes of raw sugar in a tender.The deadline for offers is January 8, GASC said. It earlier put the deadline at January 7, but this clashes with the Coptic Christmas. Click here to read full stories.