Softs News

Apr 20 - Daily Cocoa Futures Market Report

The reaction to the massive reduction of the speculative long position in London was not surprising. Shortly after opening, prices gained up to GBP 30 and found resistance around GBP 1660 (Jul 21) on fresh selling. The downtrend was accelerated in the afternoon by an increasingly firm British pound, which gained significant ground against the euro and US dollar. Eventually, most of the morning rally levelled off with a GBP 4 firmer Jul 21 close. The question remains whether the liquidation of the speculative long position has already come to an end. What is certain, at least, is that the origin still has to sell, which should put pressure on the market through resulting hedge selling and could prevent too significant firming. Speaking of the origin: Last week's arrivals in the IVC, at 65k mt, are clearly above the previous year's week (23k mt).

Apr 19 - Daily Cocoa Futures Market Report

In anticipation of the North American grinding figures published in the evening (Q1 2021 with 118k mt +2.05% above last year), the players apparently settled their accounts for the time being. In any case, yesterday was little to feel from the energy of the previous week. Weak opening, volume 26k lots, GBP 24 range...overall no clear heading. Jul21 closed GBP-2 unspectacular at GBP 1630, the rest of the board also remained unchanged. The structure also stood stable, though there is little doubt that the current carry structure should continue to manifest. In the grading room, 3 new BDUs Nigeria and 120 SDUs IVC re-grades received new certificates after close, which should keep the front spread further in the discount. Worth mentioning is the today's weak British pound that trades against the euro for some time again above 0.87.

Apr 16 - Weekly Int'l Pepper Market Report, week 12-16 April 2021 (IPC)

- As Muslims around the world celebrate Ramadhan amidst the global pandemic of Corona Virus, market showed a mixed response. In local market, Malabar black pepper was reported with 1% deficit when compared to the previous week, averaging at USD 5,166 per Mt. The decrease of India's pepper could be contributed to the weakening of Indian Rupee against the US Dollar (INR 75.05 @ USD 1), recording a 2% depreciation. Indonesia black and white pepper were reported with a 1% and 4% deficit respectively when compared to the previous week, averaging at USD 3,144 per Mt for black pepper and USD 6,015 per Mt for white pepper. The decrease of Indonesian price could be contributed to the weakening of Indonesian Rupiah against the USD Dollar (IDR 14,630 @USD 1), recording a 1% depreciation. It was also reported that the current situation of pepper prices in Bangka Province of Indonesia was more influenced by speculators which possessed more stock as compared to farmers. Malaysia black and white pepp er were reported with an increase of 5% and 3% respectively as compared to the previous week, averaging at USD 2,979 per Mt for black pepper and USD 4,387 per Mt for white pepper. Viet Nam farm gate price of black and white pepper were reported with 2% and 3% deficit respectively as compared to the previous week, averaging at USD 2,926 per Mt for black pepper and USD 4,506 per Mt for white pepper. Furthermore, China white pepper was reported stable and unchanged.
- International market also showed a mixed response as India black pepper was reported with the same 1% deficit when compared to the previous week, averaging at USD 5,433 per Mt. Indonesia black and white pepper were reported with 1% and 4% deficit respectively when compared to the previous week, averaging at USD 3,751 per Mt for black pepper and USD 6,933 per Mt for white pepper. Malaysia black and white pepper were reported stable and unchanged. Contrary with its local price, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 1% respectively as opposed to the previous week, averaging at USD 3,635 per Mt, USD 3,675 per Mt and USD 5,370 per Mt respectively. China white pepper was reported stable and unchanged.

 

Apr 15 - Daily Cocoa Futures Market Report

With the European grindingl figures within expectations, there was, unsurprisingly, consolidation at current levels. The July 21 continued to find good buying interest towards the GBP 1600 support, which is almost exactly on the long-term uptrend line (see chart). The range was also narrow at GBP 21 (GBP 1614/1635). Closing price July 21 GBP -3 at GBP 1632. The only highlight was the July / July 21 arbitrage, which temporarily extended to GBP -160 (closing GBP -150). Certainly due to a firm CRB index (+2%) and a firm performance of the other commodities on yesterday's trading day, which pulled the cocoa slightly upwards in New York ($ +18 / close $ 2459)

Apr 15 - Cocoa trader Olam says new EU law may force it to drop some suppliers 

Commodity trader Olam said on Wednesday that new European Union legislation aimed at preventing the import of commodities linked to deforestation and human rights abuses might force it to stop using some of its cocoa suppliers.  Olam and other global companies with operations that include countries where environmental and human rights abuses are widespread, face increased pressure from consumers and lawmakers to source their products ethically.

Apr 14 - Daily Cocoa Futures Market Report

After three days of heading south and losing GBP 80, London slammed on the brakes yesterday and corrected with fading selling pressure and above average volume (42k lots) initially around GBP 20. After opening NY, the very volatile arbitrage, temporarily at GBP +155 (closing GBP 135), brought further support. The Jul21 ended up gaining GBP 25 to close at GBP 1635. The front structure strengthened, the May/Jul 21 spread gaining 8 points (closing at GBP -22). It seems likely that some of the firming was due to the Q1/21 grinding figures that were released this morning, with some players looking to quickly square their positions. ECA is down -3.01% year-on-year in Q1 at 357.8k mt, with Germany participating here with a loss of -8.01% (91.5k mt). Overall within expectations. For a more reliable statement, we will have to wait for the North American figures tomorrow evening.

Apr 13 - Vietnamese cashew market becomes active again (IHSmarkit)

    Factories are collecting and drying raw nuts.
    Rains are making this process difficult.
    African raw cashews remain more expensive.

- The Vietnamese cashew market was quiet with limited transactions early last week but picked up later in the week.
 
- Ho Chi Minh City-based Golden Bridge observed that when trading started, the WW320 grade was confirmed at USD3.0 per pound fob from medium BRC packers while HACCP packers sold easily at USD2.90-2.95/lb fob for May and June shipments.
- Demands on other grades such as WW180, WW210, WW240, WS, LP, SP are also much stronger compared with previous weeks.
- Golden Bridge explained that factories are focusing on collecting and drying raw nuts from the main harvests of Vietnam and Cambodia.
- Some cashew plantations have confirmed that volumes are down by 20-30%. However, Golden Bridge cautioned it is still necessary to wait to have the up to date figures about the crops as this drop is not recognised in all areas. The main problem has been the early arrival of the rainy season which creates a lot of difficulties for factories in drying and storing raw nuts.
- African raw nuts continued to be higher priced. For example, Ivory Coast 47OT was at USD1,250/tonne cfr Ho Chi Minh City and 48OT at USD1,300/tonne cfr Ho Chi Minh City.

Apr 13 - Indian cumin seed price growth continues (IHSmarkit)

    13% increase in 2020 exports.
    2% increase in the spot price.
    Futures prices for deliveries in May started at INR15,000/quintal level.

- The Indian cumin seed fob spot price closed at INR14,076 per quintal (USD188/quintal) on 12 April at the Unjha market (Gujarat, North West), 2% more than on 15 March.
- The federation of Indian spices stakeholders (FISS) has launched its Gujarat (the main origin) 2020-21 cumin crop estimate, 15% lower (200,000 tonnes) than in the previous season due to poor yield and cut in planted acreage.
- Indian cumin seed exports started 2020 with 14,880 tonnes, worth USD29.2 million, 13% more year-on-year in volume and unchanged in value, according to customs data. China was the main importer, taking 14% of the total exported volume.

Apr 13 - Frost might potentially halve Italian fruit production (IHSmarkit)

    Apricots, peaches, cherries and grapes among the affected crops.
    Some losses reported for leaf vegetables and tomatoes.

- Freezing cold waves were recorded across Italy in the day following Easter, affecting apricots, peaches, strawberries, kiwis, leaf vegetables, early tomato for processing and early sweetcorn.
- According to growers’ organisation CIA-Agricoltori, the frost could have potentially damaged 50-75% of the production in the centre-north as fruit trees were in full bloom when night temperatures dropped to –7°C.
- Many growers, especially in Tuscany, set hay bales on fire to try to raise temperatures in the vineyards, while in the apple orchards the shoots had been frozen in advance to try to protect them. Some concerns were raised for cereal cultivations.
“Apricots, peaches, kiwis, cherries, pears and apples, grapes and even some vegetables, are the affected crop,” a source told IHS Markit, “the damage is considerable as there have been six-seven nights with temperatures of -3° to -7°C in different regions. The frost hit the whole country: north, centre, south and even Sardinia. The damage might be anywhere between 30-100%, but still not quantified.”

- In Emilia-Romagna, cherry trees in bloom as well as pear and apple orchards, were the most affected together with leafy vegetables for fresh consumption, but also vineyards including the Lambrusco variety. Smaller crops for apricot, plum, peach, nectarine and cherry are expected in the areas of Rimini, Forlì-Cesena, Ravenna, Bologna, Ferrara and Modena. Some damage is already affecting kaki and kiwi, especially in plants without an anti-frost system and anti-hail nets.
- In the Piacenza area, newly transplanted tomatoes for processing were struck by the cold spells, but the damage should be contained. “Luckily, we are only at the beginning,” said Claudio Bressanutti, director of Coldiretti Piacenza. “Plants are in the fields in small numbers”.  
- In Piedmont, Nebbiolo vineyards, in the Alba area, focused on the production of Barbera, Moscato and Brachetto wines, the frost might have halved production and in the Alessandria’s area losses in some vineyards could be up to 80%.
- In Veneto some concerns were raised for the Prosecco, Chardonnay and Pinot grapes cultivars being the white grapes the most affected as this was the variety whose blooming was most advanced. Some varieties of peaches, apricots and plums and arable crops such as beets and corn were not spared by the frost bites.

- The late frosts also hit Trentino with an intensity, close to 1997 and 2017, which caused significant damage to apple production. Farmers have resorted, where possible, to anti-frost systems, and where these are absent, pellet stoves or even paraffin candles. Kiwi, vineyard, courgette, asparagus, artichokes, peaches, but also almond and hazelnut have probably been affected by the thermal shock in the region of Lazio.

- In Campania more than 1,500 hectares of tomato and kiwi plantations between Naples and Caserta were destroyed by the frost, according to Coldiretti Napoli. The organisation estimated that up to 50% of the cultivars might be lost as they were in the very first phase of fruit growth. Sources contacted by IHS Markit explained that tomato for processing were heavily damaged in the Caserta area where the transplanting was at 50%. The area should have accounted this season for 20% of the total production in the south of Italy that early estimates pegged at 2.5-2.7 mln tonnes.

Apr 13 - Daily Cocoa Futures Market Report

With impressive volume of almost 40K lots, further selling of the longs put further pressure on the market right after the open. July 21 traded at lows of GBP 1607, the lowest prices since late December 2020, closing GBP -13 at GBP 1610. Structure remained in the spotlight yesterday, weakening further (May / July 21 GBP -29); the market is now trading in carry for the first time since February 2019. Ivory Coast first quarter 2021 grinding figures gained 4.5%. Arrivals in Côte d'Ivoire as of 11.04 stand at 1.718mn mt vs. 1.672mn mt from a year ago (+2.8%).

Apr 13 - Kenya to Offer at Least 848 Metric Tons of Arabica Coffee Beans at Auction (DJ)

- Kenya will offer at least 848 metric tons of arabica coffee beans at an auction on April 13, the Nairobi Coffee Exchange said Monday.
  At the prior auction on April 7 the average price across all grades fell by 8.4% to $198.42 for a 50-kilogram bag, from $216.62 at the previous week's auction, the auction house said in a market report.
  Almost all Kenyan arabica coffee is sold at an auction run by the Nairobi Coffee Exchange, with most destined for export. However, direct sales are allowed.

Apr 12 - Daily Cocoa Futures Market Report

London failed to find its footing at the end of the week and slipped further on handsome volume.The action was clearly in the front three months, which accounted for around 40k of the total volume of 56k lots.  Here, prices came under significant pressure once again, led by the May/Jul21 spread, which lost another 13 points to close at GBP -25. The second month lost another GBP 27 and ended an eventful week at GBP 1620, heading for the next support at GBP 1610 (see trend line in the chart). The structure has thus turned around spectacularly within a few days. Of course, the Commitments of Traders figures as of last Tuesday do not yet reflect all this: Managed Money net 44k lots long (-2k lots) / total approx. 61k (-3k lots). The European grind figures will be published this Wednesday, followed by North America on Thursday.

Apr 09 - Weekly Int'l Pepper Market Report, Week 5-9 April 2021 (IPC)

- Market this week showed a rather positive response with only Viet Nam farm gate price was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 3% when compared to the previous week, averaging at USD 5,221 per Mt. Indonesia black and white pepper were reported with an increase of 6% and 4% respectively when compared to the previous week, averaging at USD 3,163 per Mt for black pepper and USD 6,256 per Mt for white pepper. The increase of Indonesian price could be contributed to the high demand despite the limited to none stock in farmer level. Malaysia black and white pepper were also reported with an increase of 6% and 4% respectively as compared to the previous week, averaging at USD 2,845 per Mt for black pepper and USD 4,259 per Mt for white pepper. Viet Nam farm gate price of black and white pepper were reported with 1% and 2% deficit respectively as compared to the previous week, averaging at USD 2,991 per Mt for black pepper and USD 4 ,628 per Mt for white pepper. Furthermore, Sri Lanka black pepper was reported with an increase of 4% as compared to the previous week and was traded at an average of USD 3,418 per Mt. China white pepper was reported stable and unchanged.
- International market was reported with a rather positive outlook as India black pepper was reported with the same increase of 3% when compared to the previous week, averaging at USD 5,492 per Mt. Indonesia black and white pepper were reported with an increase of 5% and 4% respectively when compared to the previous week, averaging at USD 3,772 per Mt for black pepper and USD 7,204 per Mt for white pepper. Furthermore, Malaysia black and white pepper, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper as well as China white pepper were all reported stable and unchanged.

Apr 09 - Daily Cocoa Futures Market Report

The after all 15 points firmer opening initially suggested that the ups and downs of recent weeks could continue. However, little buying interest was found here, and further liquidation or rolling of the speculative longs put the market under pressure, especially in the front. The front spread already lost GBP-14 by midday, and the NY opening brought further pressure. In the last fifteen minutes of the trading day, the downtrend accelerated further, and Jul21 ended the day 22 points down at GBP1650. The May/Jul21 spread closed in the discount (GBP-9) for the first time since summer 2020; Jul/Sep21 at GBP -11. The structure has thus turned for now, raising the question of whether specs will continue to reduce their position in the con-sequence. Meanwhile, the GBP lost further ground against the EUR, and in light of the US unemployment figures, the USD also came under pressure.

Apr 09 - CBOT corn futures jumps 4% as ethanol, export confidence grows (AgriCensus)

Chicago corn futures gained up to 4% Thursday as a combination of buying from ethanol producers and after the USDA revealed strong net sales figures, driving investors to buy prompt contracts, trade sources said.

The front month May contract added almost 22 cents at one point, climbing to $5.83/bu at one point, up 4% on the overnight settle, before easing slightly as the end of day approached, after the USDA put US corn net sales for the 2020/21 marketing year at 66.4 million mt.

The agency has forecast exports of 66 million mt for the full marketing year, but news that net sales have already surpassed that figure with a third of the marketing year still to go teed up expectations of a major revision of figures when the monthly Wasde report is released on Friday.

“Fundamentally we can say that exports are now to a point where the USDA should very seriously consider increasing their target as sales keep up and shipments are going out,” Ted Seifried of Zaner Ag Hedge told Agricensus.

At 66 million mt, the US was already on course for a record-breaking year but the pace of buying from China in particular has left analysts to already revise their expectations for 2020/21 corn exports higher, with some calling for as much as 72 million mt.

On top of that, growing confidence in the country’s ethanol sector, after a prolonged period of struggle under the administration of President Trump, is also fuelling the upward momentum.

“The margin picture is definitely better than anybody could have predicted even six weeks ago, so we’ve clearly pushed a few more guys into the mindset of ‘I need to get some June/July corn bought,” Kelly Herrick of Advance Trading noted.

With around 40% of a typical US corn harvest used to produce ethanol, the apparent rosy outlook for the upcoming peak driving season has raised expectations of a further recovery in production after lockdowns severely dented driving demand.

Finally, fears over Brazil’s weather damaging the outlook for the country’s vital second corn crop mingled with rumours that Chinese trade sources had made enquiries over buying additional volumes of corn to provide a potently supportive cocktail.

“I have also heard the bit about ethanol producers getting more aggressive on bids because they feel more confident in the summer driving season,” Seifried said, while the China rumours – a regular part of the industry currently – have proved difficult to confirm.

Apr 08 - Daily Cocoa Futures Market Report

For the third day in a row, the July 21 200-day moving average provided further support at GBP 1665 and the market struggled to break through it. July 21 LDN traded in a range of GBP 1665/1683 and ended the day at GBP -4 at GBP 1672; the other dates closed almost unchanged / slightly up. The May / July 21 spread continued to weaken, trading to a premium of GBP +20, losing GBP 18 in a few days. This ominous GBP 20 premium seemed to have provided some support in recent weeks, so a "rebound" remains not entirely unlikely. If the spread continues to weaken, we can hope for a further correction in prices. The industry is waiting in the wings to continue to accompany the market with price covering

Apr 08 - Sugar beet set for losses as freeze hits French crop belts 

Freezing temperatures across much of France this week may have caused severe damage to newly planted sugar beet, adding to the difficulties of a sector hit by crop disease and low prices in recent seasons. Rapeseed could also suffer losses as the oilseed enters the important flowering stage, although cereals in the European Union's biggest crop producer were seen as less vulnerable, analysts said.

Apr 07 - Daily Cocoa Futures Market Report

At GBP-13, London opened a good distance away from the theoretical opening of GBP -40, and the day passed without any notable highlights, but was largely under pressure. Jul 21 retested the 200-day moving average at GBP 1664, but found support at this level from increased buying interest. Also a yesterday for the first time in several weeks slightly weaker GBP (today 0.8600 against the EUR) helped to support the market. Apparently, the vaccination campaign getting underway in the Euro zone is lending some strength to the common currency (despite Boris Johnson's relaxed announcement to grab a beer again next week - albeit in front of and not in the pub). Thus, no downward trend manifested itself and the Jul 21 closed at GBP 1677 (-5) in the evening. At 10,000mt, arrivals in Côte d'Ivoire continue to lag behind the same week last year (16,000mt).

Apr 07 - South American mango purée finds ready markets (IHSmarkit)

Fruit processing from the new Magdalena harvest has started and Middle Eastern clients are already placing orders, saying that they have “issues” with India.

India is still at least six weeks away from harvesting its Alphonso mango and, with the delays in shipping and the present shortage of mango purée, both single strength and concentrate, the door is open to Latin American suppliers. They had an opportunity last year, but the effects of the coronavirus on transport and labour availability meant they were unable to capitalise on it.

The crop looks pretty normal. The weather has been as expected and the only concern is the third wave of the Covid virus, which is hitting the northern coast of Colombia quite hard. New curfews and lockdowns have started.

Processor CEA says it has already sold at least 80% of its expected crop in advance, which this year is forecast at 100,000 tonnes of fruit.

Magdalena purée, 28 brix, looks likely to cost around USD1,250-1,350 per tonne fob Barranquilla, or USD1,330-1,380 cfr Rotterdam.Coca-Cola may sell its African bottling operation.

Apr 07 - Indian guar gum price fall steepens

The Indian guar gum spot price was INR5,912 per quintal (USD80.6/quintal) at the Jodhpur wholesale market on 31 March, 10% less than on 1 March.

Indian guar gum exports were 15,120 tonnes, worth USD19.1 million in January 2021, and a third less year-on-year in volume and 42% less in value. The US, Germany and Russia accounted for 34%, 11% and 8%, respectively, of the total exported volume.

Apr 07 - Weather concerns in Brazil prompt increase in arabica coffee prices (IHSmarkit)

Arabica coffee futures posted small gains as dry weather in most growing areas in Brazil is supporting prices as it could hurt bean growth in the last development stage before the harvest starts.

The benchmark May arabica coffee contract settled up 0.50 cents at 122.10 cents per pound on Monday (April 5), in dealings between 120.55 and 122.90 cents. Speculators cut their net long position in arabica coffee futures and options by 9,349 contracts to 12,236 in the week to 30 March 2021, the latest Commitments of Traders report showed. Meanwhile farmers in Vietnam’s Central Highlands sold coffee at VND31,300-32,800 (USD1.36-1.42) per kg, down from the prior week's VND31,800-33,000. Traders offered 5% black and broken-grade 2 robusta at a premium of USD60 over July, compared with the prior week's $55-60 over May. In Indonesia, robusta beans were offered at a USD220 premium over July, compared to US230 over May.

Apr 07 - Analysts surveyed by Dow Jones expect US ethanol production to rise in this week's report from the EIA, with production forecast to rise as high as 1.03M barrels a day for the week ended Friday. Should production rise this high, it'd be the highest level for US ethanol production seen since early March 2020, before the Covid-19 pandemic set in and disrupted gasoline consumption in the US. The EIA reported last week that production for the week ended March 26 totaled 965,000 barrels a day. Meanwhile, analysts also forecast that US stockpiles are expected to fall, to as low as 20.7M barrels. This would be 400,000 barrels lower than last week, and the lowest stocks have been since early November.

Apr 06 - Daily Cocoa Futures Market Report

After 5 days of almost continuous liquidations by long holders as well as fresh new shorts, a short stop occurred on Thursday. July 21 traded in a GBP 20 range and ended the day at GBP +17 at GBP 1682, industry price hedges at current levels and an interim May / Jul 21 rally to GBP -25 (close GBP -32) were the key triggers. On Easter Monday, New York was solo and ended the day weak at US$ -52 at US$ 2364 / Jul 21. Gives a theoretical opening LDN today of GBP -40. Commitment of Traders as at 30.03.21 show a combined reduction in net long position from 16,369 lots to 63,851 lots. Managed money liquidated a combined total of almost 20k lots, with NY leading the way with a good 9k lots of longs reduced and over 7k lots of fresh shorts. However, it remains to be mentioned here that NY continues to carry and LDN is inverse.

Apr 05 - Brazil's Cooxupe Forecasts Its 2021 Coffee Production Will Fall to 7.5M Bags
- Brazilian coffee cooperative Cooxupe expects the 2021 crop produced by its members to drop by almost 32% from a year earlier because of hot, dry weather last year and a normal two-year decline in productivity, according to President Carlos Augusto Rodrigues de Melo.
  The cooperative's members will grow 7.5 million 132-pound bags of arabica coffee this year, down from 11 million bags last year, Mr. Melo said.
  Brazil is the world's biggest grower of arabica coffee, and Cooxupe has the biggest production in the country.
  Unusually hot and dry weather last year in parts of the state of Minas Gerais, by far the biggest grower of coffee in Brazil, hurt the development of the plants and reduced productivity for Cooxupe's members and other growers in the state. Brazil's arabica harvests also follow a two-year cycle in which production declines in odd-numbered years as the plants recover from the bigger output in even-numbered years.
  "In normal conditions the decline in production would have been a lot smaller," closer to 25%, Mr. Melo said.
  Because of the two-year development cycle of the coffee plants, last year's hot and dry weather will also affect the 2022 crop, though it is too early to say by how much, said Mr. Melo. He expects the 2022 crop to be about the same size as in 2020, or possibly a bit bigger.
  Brazil had record production of arabica coffee in 2020 of 48.8 million bags, and also had record exports, reducing carryover stocks to low levels.
  With the bigger-than-normal drop in production this year, supply will be tight and prices should remain firm, Mr. Melo said.
  "There's no surplus coffee, the relation of supply and demand, from Brazil and the world, is pretty tight," he said, adding that Cooxupe will be able to meet demand from its customers.

Apr 02 - Brazil's Cooabriel Coffee Cooperative Sees Its 2021 Robusta Crop at 1.8M Bags
- Brazil's Cooabriel coffee cooperative expects its members to boost production by about 20% in 2021 from last year as the plants recover from a rough winter in 2019 and have a normal recovery from a smaller crop in 2020, according to sales manager Edimilson Calegari. 

  Cooabriel, Brazil's biggest cooperative growing the robusta variety of coffee, expects production by its members of about 1.8 million 132-pound bags of beans this year, up from 1.5 million in 2020, Mr. Calegari said.
  Brazil is the world's second-biggest producer of robusta coffee, after Vietnam, and in 2020 produced 14.3 million bags of robusta.
  Many Brazilian farmers grow robusta coffee on a four-year cycle in which plants' output increases over that period, said Mr. Calegari. After reaching peak production, growers prune their plants and yields fall the following year and the cycle restarts.
  Brazil grew a record 15 million bags of robusta in 2019 and production declined in 2020 as farmers cut their plants. A cold, windy winter in 2019 also reduced output in 2020, Mr. Calegari said.
  "This year we're recovering the production we lost last year. It's not like now we're producing more, we're returning to what we lost last year, " he said.
  Cooabriel, based in the small town of Sao Gabriel da Palha in the state of Espírito Santo, has about 6,000 members, with about 5,000 of them regularly selling their coffee through the cooperative and the rest sometimes selling to buyers offering higher prices, according to Mr. Calegari.
  The cooperative's members will probably produce less coffee next year because many of them will prune their plants this year after the expected big harvest, and because the weak Brazilian currency is making imported fertilizers and pesticides much more expensive, Mr. Calegari said.

Apr 02 - Tricky times in Brazil nut market (IHSmarkit)
  The market for Brazil nut kernels is a difficult one at the moment, following delays to the crop in Bolivia. Dutch broker Global Trading noted that the crop was delayed by approximately four weeks as the drop of pods was late due to below average precipitation in November. In addition, it took a while for the processors and collectors to find an agreement on opening price of the raw material.
“Finally they found a price to work on but as this was not that attractive to the collectors. They did not go far into the jungle and the total quantity of collected nuts will be less,” Global Trading observed.
  The firm explained the raw material price is strong and increasing due to strong competition between processors but also because Peruvian and Brazilian processors are coming to Bolivia to buy raw material. Hence, a lack of raw material in the hands of processors is limiting offers which are forcing buyers to be bidding up in origin in order to attempt to get product which in turns creates artificial price increases.
  Moreover, the Brazil nut market is experiencing logistical issues. Heavy rains are slowing down the raw material receipts at the factories and kernel shipments to the port of Arica. In addition, there are the worldwide shipment issues on top of that (backlogs of vessels due to port closures etc. arising from the Covid-19 pandemic).

Apr 02 - Weekly Int'l Pepper Market Report, Week 29 March-2 April 2021 (IPC)
- Market this week showed a rather positive response with only Sri Lanka was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 2% when compared to the previous week, averaging at USD 5,075 per Mt. Indonesia black and white pepper were reported with an increase of 11% and 14% respectively when compared to the previous week, averaging at USD 2,997 per Mt for black pepper and USD 6,028 per Mt for white pepper. The increase of Indonesian pepper price could be contributed to the increase of demand amidst the limited stock. Though farmers' stocks depleted, it was reported that some speculators bought a hefty amount for their in-stock and further business. Malaysia black and white pepper were reported with an increase of 5% and 3% respectively as compared to the previous week, averaging at USD 2,679 per Mt for black pepper and USD 4,097 per Mt for white pepper. Viet Nam farm gate price of black pepper was reported with an increase of 1% as compar ed to the previous week, averaging at USD 3,035 per Mt. Whilst, Viet Nam white pepper was reported stable, averaging at USD 4,710 per Mt. Furthermore, Sri Lanka black pepper was reported with 2% deficit as compared to the previous week and was traded at an average of USD 3,290 per Mt. China white pepper was reported with an increase of 1% as opposed to the previous week and was traded at an average of USD 6,185 per Mt locally.
- International market was reported with a positive outlook as India black pepper was reported with the same increase of 2% when compared to the previous week, averaging at USD 5,348 per Mt. Indonesia black and white pepper were reported with an increase of 10% and 13% respectively when compared to the previous week, averaging at USD 3,583 per Mt for black pepper and USD 6,949 per Mt for white pepper. Malaysia black and white pepper were reported with an increase of 5% and 4% respectively as compared to the previous week, averaging at USD 4,225 per Mt for black pepper and USD 5,560 per Mt for white pepper. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and unchanged. China white pepper was reported with an increase of 1% as opposed to the previous week and was traded at an average of USD 6,385 per Mt.
- The price of pepper in the US market remained high as Muntok white pepper for CF April/May was reported at USD 7,300 per Mt.

Apr 01 - Daily Cocoa Futures Market Report

As expected, open interest continued to decline yesterday, as on the previous day, on rising volume (39k lots mainly in the front spread); indications of ongoing speculative long liquidation. Jul 21 closed almost unchanged at GBP 1665 (+4). The CCC announced the new minimum farmgate price, henceforth for the beginning mid-crop. At FCFA 750/kg (€1,143 pmt), this was reduced by a handsome €381/mt. However, this reduction was expected in view of the recent collapse in country differentials, which in aggregate offset the Côte d'Ivoire LID. The original price for Ivorian cocoa is thus at pre-LID levels. Meanwhile, Ivorian opposition ex-president Laurent Gbagbo was acquitted in The Hague of charges of human rights violations 10 years ago. This would pave the way for his return to Côte d'Ivoire, which is unlikely to be helpful to political stability.

Apr 01 - Pakistan lifts ban on sugar imports from arch-rival India as prices rise 

Pakistan lifted a nearly two-year ban on sugar and cotton imports from arch-rival India on Wednesday, the finance minister said, a step towards reviving suspended trade between the two nuclear-armed neighbours. Pakistan's Economic Coordination Council (ECC), a top decision-making body, allowed the private sector to import 0.5 million tonnes of white sugar as Islamabad tries to keep soaring domestic prices in check.

Mar 31 - Daily Cocoa Futures Market Report

Straight through: With twice as much volume as on Monday - almost 32k lots - and a 44 GBP range, the market came under pressure from the start and wandered through the 50-, 100- and 200-day moving averages without much effort. As a result, prices closed at their lowest levels in over six weeks, with the 2nd month Jul 21 ending its slide at GBP 1661 (-35). There are signs of a liquidation of the long position: The May/Jul 21 spread narrowed by around GBP 8 and found support at the previously seen premium of GBP +29 (close GBP +30). Most likely this is partly due to the BDU gradings mentioned yesterday (May 21 lost 43 points; volume 10.5k lots). All in all, this is fuel for the Bears. When could the correction come? Technically, the way to the lower support around GBP 1630 base Jul 21 would be clear. 

Mar 31 - Brazil kicks off survey of private coffee stocks
Brazil's food supply and statistics agency Conab has launched a survey to gauge the size of the country's private stocks of coffee, according to a statement on Tuesday, as Latin America's largest economy grapples with rising food inflation. It will the first time that the government collects data on private wheat stocks based on information provided by both producers and millers, Conab said. 

Mar 31 - Cargill sells stake in Alvean to Copersucar, leaves sugar trading
Cargill said on Tuesday it is leaving the global sugar trading business after agreeing to sell its 50% stake in the joint venture Alvean, the world's largest sugar trader, to Brazil's Copersucar. Copersucar and Cargill said they reached an agreement to end their partnership at Alvean, with the Brazilian company becoming the sole shareholder of the company, which moves around 12 million tonnes of sugar per year, or around 20% of the global trade of the sweetener.

 Mar 30 - Daily Cocoa Futures Market Report

While in the euro zone a new lockdown is not becoming more likely, the UK is starting to ease its lockdown. As a result, the British pound continues to gain ground against the euro. This added further pressure to the market yesterday, but there was no significant resistance either: London saw the weakest volume of the year so far (13.8k lots) in a GBP-16 range. The July 21 lost GBP-7 and closed at GBP 1696, but with daily lows of 1691 there was no sign of a retest of the 50-day average this time. Highlights, hardly worth the name, were the first gradings (3 BDU fresh Nigerias) and the structure in which the front spread diverged slightly. The IVC farmers are optimistic (2 days before the announcement of the new minimum price) about the medium harvest due to the weather. 

Mar 30 - Ivory Coast farmers bullish about mid-crop as rainfall increases
Above average rains mixed with sun last week in most of Ivory Coast’s cocoa-producing regions have bolstered expectations for a strong April-to-September mid-crop, farmers said on Monday. Ivory Coast, the world’s top cocoa producer, is entering its rainy season, which runs from April to mid-November. The West African country's southern and coastal regions are expected to see particularly high rainfall this year, the national weather forecasting body has said.

Mar 29 - Daily Cocoa Futures Market Report

After a firm opening to the daily highs of GBP 1715 Jul 21, prices soon came under pressure. Support was again found around the 50-day average at GBP 1688. The close was at GBP 1703, almost exactly at the previous week's levels on balance. The structure has also changed only marginally and so one wonders where the cocoa is heading at the moment. In fact, since the beginning of March we have been seeing a steady downward trend, which should fit in with the overall bearish environment. A not insignificant factor in this development is the Managed Money Buyers, who reduced their net long position by -5,320 lots to a good 65k lots as of last Tuesday. Overall, the long position shrank by -11.7k lots, for a total of +80k lots. Now the Easter days are coming up and soon after that the Q1 trading figures. It remains to be seen whether these will bring a little momentum.

Mar 29 - Funds cut long positions across soft commodities, says CFTC
Speculators reduced their net long positions across the soft commodities complex in the week to March 23, cutting their bullish bets in sugar, coffee, cocoa and cotton futures, data from the U.S. Commodity Futures Trading Commission showed on Friday. Money managers and hedge funds cut their long position in sugar by 16,377 contracts for the period to a total of 115,014 contracts. Raw sugar futures touched a three-month low on Thursday hit by longs liquidation.

Mar 26 - Weekly Int'l Pepper Market Report, Week 22-26 March 2021 (IPC)
- Market this week showed a rather positive response with only Viet Nam local price was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 1% when compared to the previous week, averaging at USD 4,980 per Mt. Indonesia black and white pepper were reported with an increase of 8% and 12% respectively when compared to the previous week, averaging at USD 2,699 per Mt for black pepper and USD 5,295 per Mt for white pepper. The increase of Indonesian pepper price could be contributed to the increase of demand following Viet Nam's short and the limited stock. Malaysia black and white pepper were reported with an increase of 2% and 1% respectively as compared to the previous week, averaging at USD 2,559 per Mt for black pepper and USD 3,991 per Mt for white pepper. After experiencing significant increase in the last five weeks, Viet Nam farm gate price of black and white pepper were reported with 4% and 2% deficit respectively as compared to the pr evious week, averaging at USD 2,997 per Mt for black pepper and USD 4,716 per Mt for white pepper. Furthermore, Sri Lanka black pepper was reported with an increase of 10% as compared to the previous week and was traded at an average of USD 3,341 per Mt. China white pepper was reported with an increase of 10% as opposed to the previous week and was traded at an average of USD 6,134 per Mt locally.
- International market was reported with a positive outlook as India black pepper was reported with the same increase of 1% when compared to the previous week, averaging at USD 5,256 per Mt. Indonesia black and white pepper were reported with an increase of 8% and 12% respectively when compared to the previous week, averaging at USD 3,245 per Mt for black pepper and USD 6,132 per Mt for white pepper. Malaysia black and white pepper were reported with an increase of 2% and 1% respectively as compared to the previous week, averaging at USD 4,010 per Mt for black pepper and USD 5,360 per Mt for white pepper. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and unchanged. China white pepper was reported with an increase of 9% as opposed to the previous week and was traded at an average of USD 6,334 per Mt.
- US market since last week was reported to highly fluctuate and behave uncontrollable due to cargo situation as well as the lack of offer. Muntok white pepper in US Market for CF April/May was reported at USD 6,100 per Mt.

Mar 26 - Daily Cocoa Futures Market Report

After a few days of a laborious, tough downward movement, yesterday was the end (for now). Short-term speculative buyers ("cocoa tourists") provided highs of GBP 1720 and a close of GBP +17 at GBP 1705 / July 21. July 21 in New York touched its 200-day moving average at $ 2437 for the second day in a row, which provided further good support. Closing $ +20 at $ 2473. Fundamental market participants, like the origin, continue to hold back and wait for the first reliable figures on this year's Easter sales.

Mar 26 - Brazil's new sugar season off to a slow start
Mills in Brazil's centre-south area, the world's largest sugar producing region, made a slow start to the 2021/22 season, crushing 43% less cane in the first half of March than last year's volume in the period as dry weather stunted cane growth. According to a report by industry group Unica released on Thursday, sugar and ethanol plants processed 1.67 million tonnes of cane in the first two weeks of the month versus 2.95 million tonnes a year earlier.

Mar 25 - Daily Cocoa Futures Market Report

The once again narrow range of GBP 20 and shallow participation (20k lots) did not bring any insights worth mentioning. Speculative long liquidations and also the weaker British pound could not harm an initial firming. In the afternoon, the opening in NY brought prices under pressure. The July 21 lost ground to lows of GBP 1677, but could not break the technical support of the 50-day average trading at this level, supported by increased short covering. Closing GBP 1688 Jul21 (+2). However, the front May/Jul 21Spread widened slightly to now GBP 38. And the origin? Keeps waiting with its pre-sales. Not even the 2020/21 mid-harvest contracts are likely to have been fully sold so far, not to mention the new main crop - where the CCC is likely to remain well behind previous years.

Mar 25 - Cardamoms Average Auction Prices in India
  During the three months of November 2020 to January 2021, both small and large cardamoms average auction prices in India saw a mixed response. The average auctioned price of small cardamoms in India in the three months period was reported with INR 1,608.57 per Kg (Table 3) with the highest average auctioned price recorded in 16 December 2020 with INR 1,963.25 per Kg. Whilst, the lowest average auctioned price was reported at INR 1,332 per Kg in 3 November 2020.
  Furthermore, the average auctioned price of large cardamoms in India in the three months period was reported at INR 426.80 per Kg with the highest average auctioned price recorded in 24 December 2020 at INR 460.21 per Kg and the lowest was reported at INR 365.83 per Kg in 31 December 2020.

Mar 25 - Export of Cardamoms by India
  As one of the biggest producers of cardamoms in the world, India in the past 2 years actively exports cardamoms to various countries. In 2019, India was reported to have exported a total of 3,802 Mt of cardamoms which 84% or 3,210 Mt of it comprised of whole cardamoms and 16% or 592 Mt of it ground cardamoms. India on average exported a total of 317 Mt per month in 2019 which peaked in September with 514 Mt. The total revenue of India's export of cardamoms in 2019 was reported to be as high as USD 64.5 Million. Thus, recording an average price of the total cardamoms exported by India at USD 17,810 per Mt for whole cardamoms and USD 12,449 per Mt for ground cardamoms.
  Year 2020 saw an increasing trend in term of quantity of cardamoms exported by India. India was reported to have exported a total of 6,104 Mt which 92% or 5,596 Mt of it comprised of whole cardamoms and 8% or 508 Mt of it ground cardamoms, recording an increase of 61% when compared to 2019. The average export of cardamoms by India in 2020 was reported to be at 509 Mt per month which peaked in December with 971 Mt. In accordance with increasing in terms of quantity, India's revenue from cardamoms export was reported to have increased by 94% as compared to the previous year to a total of USD 125.0 Million. Thus, recording an average price of the total cardamoms exported by India at USD 20,444 per Mt for whole cardamoms and USD 20,872 per Mt for ground cardamoms or an increase of 15% and 68% respectively as compared to 2019.
  Cardamoms from India are traded worldwide. In 2020, India's top 5 Country of destinations for its cardamoms were reported to be United Arab Emirates with 1,630 Mt (Contributed to 27% of India's total cardamoms export in 2020), Saudi Arabia with 511 Mt (8%), Singapore with 447 Mt (7%), United States of America with 423 Mt (6.9%) and Kuwait with 399 Mt (6.5%).

 

Mar 25 - Brazilian sugar exports seen falling by 3 mln T in 2021/22 - report
Brazil's centre-south sugar exports are expected to fall by 3 million tonnes in the 2021/22 season that starts in April, to 26.5 million tonnes, as a smaller sugar cane crop will cut the sweetener's production, according to a report on Wednesday. Agricultural analyst Agroconsult projects centre-south sugar production to fall to 35.8 million tonnes in 2021/22 from 38.4 million tonnes in the previous season as total cane crush is estimated to fall 3.3% to 585 million tonnes due to dryer-than-normal weather in the region.

Mar 25 - U.S. Sugar to buy Imperial Sugar from Louis Dreyfus - statement
U.S. Sugar has reached an agreement to buy the business and assets of its local rival Imperial Sugar from commodities trader Louis Dreyfus Company, the companies said in statements on Wednesday. Imperial Sugar operates a refinery at Port Wentworth in Savannah, Georgia, and a sugar transfer and liquification facility in Ludlow, Kentucky. It was bought by Louis Dreyfus in 2012 for $78 million.

Mar 24 - Ivory Coast Rubber Harvest Rose 21% in 2020, China Was Main Buyer
-  Natural rubber produced in the Ivory Coast rose 21% in 2020, making the West African nation the world's fourth-largest producer of the crop, after Thailand, Indonesia and Vietnam.
-  Natural rubber produced in the Ivory Coast in 2020 stood at 950,000 metric tons, up from 783,000 tons the year before, according to data released Wednesday by the Natural Rubber Producers' Association (Apromac). The Ivory Coast's harvest has increased from 170,000 tons in 2005.
-  Eugene Kremien, president of Apromac, said "Apromac's key mission is to place high quality natural rubber on the world markets," as the country aims for higher yields in the years ahead.
-  Apromac exported between 60%-80% of its rubber to China, because demand from Europe and the United States collapsed, Mr. Kremien said.
-  About 160,000 Ivorian farmers control 600,000 hectares of rubber plantations in the West African country, which is also planning to increase local consumption of the crop.

Mar 24 - Daily Cocoa Futures Market Report

Yesterday's trading day did not bring any spectacular new insights. July 21 traded in a range of GBP 26 (previous day GBP 16), but apart from a few long liquidations of specs / funds, there was hardly any activity. July 21 ended the day GBP -12 At GBP 1686. New York was much weaker on the move, there was a loss of $-51 / close July 21 $2464. New York is gradually making its way towards the 200-day moving average at $2455, this should provide some support from industry buying interest. Origin continues to hold back on forward sales for 21/22, with initial cautious estimates suggesting they will be 800,000mt below year-ago levels by the end of March; conversely, big industry is also holding back on covering. The week after Easter will (hopefully) provide us with new insights.

Mar 24 - Soy, sugar traders fight for space in Latam's largest port; costs jump
Soy and sugar traders are fighting for room in Latin America's largest port, rushing to secure loading slots as the slowest Brazilian soy harvest in 10 years pushes the grains export window into the sugar season. Congestion was hitting Brazil's Santos port just as consumers worldwide have been turning to top exporter Brazil for sugar and soybean supplies. The glut of shipments waiting to leave is boosting transport costs and will likely delay arrivals at destinations.

Mar 23 - Daily Cocoa Futures Market Report

After another moderate trading day in all respects (GBP 16 range; volume just under 16.5k lots), the July 21 contract actually managed to close at GBP 1698 (GBP -6), below the GBP 1700 mark for the first time since Mar 21 expired.  The structure remained unchanged with the front May/Jul 21 spread (GBP 30) slightly firmer in recent days. Until specs decide to start rolling or liquidating their position, a big movement in the spread is considered unlikely. IVC arrivals are on par with last year (1.62 million mt), and the outlook for the mid crop is positive given abundant rainfall. Fearing a reduction in the farmgate price in early April, farmers continue to sell their cocoa below minimum price (1000 CFA/kg; €1525 pmt). At this, smuggling into Ghana is increasing, with around 850 CFA/kg (€1295 pmt) being paid at the border versus 750 CFA (€1143) locally. 

Mar 23 - Russia to extend sugar, sunflower oil price cuts to fight food inflation
Russia's government plans to extend retail price cuts on sugar and sunflower oil and eliminate some import taxes in its battle to tame the country's rising food inflation, it said in a statement on Monday. Since December, Russia has imposed several grain export taxes and other measures. Producers of sugar and sunflower oil agreed to reduce prices with retail chains until the end of March.

Mar 23 - Ivory Coast 2020/21 cocoa port arrivals at 1.622 mln T by March 21
Cocoa arrivals at ports in top grower Ivory Coast reached 1.622 million tonnes by March 21 since the start of the season on Oct. 1, exporters estimated on Monday, down 0.1% from 1.623 million tonnes over the same period last season. About 12,000 tonnes of beans were delivered to Abidjan port and 14,000 tonnes to San Pedro between March 15 and March 21 for a total of 30,000 tonnes, equal to the same week last season.

Mar 22 - Sugar futures post losses as crude oil slumps
World raw sugar futures in New York fell further last week amid a general weakness in the commodity complex led by losses in crude oil. May raw sugar settled down 0.1 cent, or 0.6%, at 15.89 cents per pound by Thursday (March 19). July lost the same at 15.56 cents and the rest of the board ended down 8 points to up 7 points in volume of 72,250 lots.
Dealers said sugar may test the recent lows of 15.85 cents given it has failed four times to break out on the top side of the range. At the same time, they stressed that the market remains well supported in the near term given physical tightness.
In London, the white sugar market lost $2.50 per tonne at $456, basis May, while August shed $2.00 at $442.20. The outer months were $0.70 to $1.70 lower in volume of 6,182 lots.

Mar 22 - Cambodia fresh mango price collapsed
In late February 2021, Cambodia's Ministry of Agriculture, Forestry and Fisheries submitted a list of 25 mango farms and three packing facilities to China's General Administration of Customs for inspection.
Cambodia sent only 25 tonnes to China in 2020, up from 2019's 10 tonnes. The average price was USD2,500/tonne cif. The pandemic has hampered the trade between China and Cambodia despite the market access which was approved in June 2020. Cambodia is given a quota of 500,000 tonnes to China annually. China allows Cambodia to use a new treatment method - hot-water treatment in the phytosanitary protocol.
Cambodian prices have collapsed due to the saturated domestic demand. In the second half of February 2021, the farmgate price was about USD0.17 per kilogram, with unpacked fruits dipping as low as USD0.04/kg, according to Produce Report.

Mar 22 - Bullish trend in Indian cumin seed prices after disappointing production forecast
The Indian cumin seed fob spot price closed at INR13,865 per quintal (USD190.2/quintal) on 15 March at the Unjha market (Gujarat, North West), 4% more than on 17 February.
The federation of Indian spices stakeholders (FISS) has launched its Gujarat (the main origin) 2020-21 cumin crop estimate, 15% lower (200,000 tonnes) than in the previous season due to poor yield and cut in planted acreage.
Indian cumin seed exports closed 2020 at 274,300 tonnes, worth USD5296 million, 30% more year-on-year in volume and 11% more in value, according to customs data. China was the main importer of the whole product, taking 35% of the total exported whole product volume.

Mar 22 - Daily Cocoa Futures Market Report

With manageable activity, scattered spec selling and tentative selling of the mid-month origin provided another move down. July 21 traded at 4-week lows of GBP 1691, breaking through GBP 1700 support in the short term but not sustainably. July 21 ended the day at GBP -25 at GBP 1704. The May / July 21 spread continues to hold firm at levels just above GBP +30. Commitment of Traders as of 16.03. also shows no groundbreaking new insights, the net long position, in both markets combined, reduced by 893 lots to 91,878 lots net long. The firm British pound at the end of the week predicts a theoretically weak opening of GBP -10 / -12, back to Friday's lows.

Mar 22 - Funds cut long positions in sugar and coffee futures - CFTC
Speculators reduced their net long positions in raw sugar and arabica coffee futures on ICE in the week to March 16, data from the U.S. Commodity Futures Trading Commission showed on Friday. Money managers and hedge funds cut their bullish bet in raw sugar by 2,919 contracts for the period, bringing their net long position in the sweetener to 131,390 contracts.

 Mar 19 - Unpredictability of Viet Nam Pepper Price (IPC) 

As it was previously reported on March 15, 2020, Viet Nam pepper price has significantly kept increasing after Tet Holiday. Thus, making Viet Nam pepper market to be unpredictable as it affected processors, industrial manufactures and growers. Three weeks past Tet Holiday, Viet Nam black pepper price recorded an increase by 40% as compared to before the Holiday. It was reported that the volume of pepper traded in Viet Nam market was limited and an enormous demand shifted to Brazil as they kept their price low enough. The current single pressure on volume ought to remind Viet Nam as well as other origins the importance to diversify its pepper processing so as able to get more added value such as pepper oil, pepper oleoresin, etc. instead of only basing it on whole product.

IPC observed that the unpredictable pepper price of Viet Nam would create an unwanted effect for both sellers and buyers as it is being a risky venture. Despite growers were benefited from the price increase which resulted in reports that some were holding to their product with the hope of a much higher price, this condition feared to push buyers to shift to other more affordable origins, resulting in the loss of value for the growers holding their product. Though increase of pepper price is a good sentiment, the current sudden pepper prices spike caused skepticism and concerned on the motivation behind the change in such a short period as it was not driven by market forces. Contrary to Viet Nam, other origins were reported less volatile as they have based their production on differentiation in terms of quality instead of just mere volume.

IPC believes that it is the main task of all pepper stakeholders in Viet Nam and internationally to give the growers more information about the supply and demand situations so they would be able to plan better. Furthermore, apart from the late arrival of the new season of which 30%-40% has been completed, the prediction of very much shortage of 2021 would make the price increase less convincing.

Mar 19 - Daily Cocoa Futures Market Report

For the third day in a row, the GBP 1700 / 1732 range held and the chart gap between GBP 1716 / 1731, caused by the month change, was closed with yesterday's high of GBP 1732. The July 21 ended the day at GBP +15 at GBP 1724. The May / Jul 21 spread traded, on good volume, in a range of GBP +21/+30. The funds / specs do not seem to have completely given up on their current campaign, the origin is still lagging far behind with pre-sales for the next crop and the industry continues to wait for lower levels for the next step in price coverage. Who will "weaken" first ?

Mar 19 - Russia reviews its measures to curb price growth for sugar, sunflower oil - Interfax
Russia is analysing its previously imposed measures to curb price growth in sugar and sunflower oil, the Interfax news agency reported on Thursday, citing the economy minister, Maxim Reshetnikov. Moscow has imposed a series of export taxes on its agriculture products since December as it attempts to stabilise rising domestic food prices amid the coronavirus pandemic. 

Mar 19 - More than beans: Nestle recycles cocoa fruit waste to replace sugar in chocolate
As confectionery groups scramble to reduce added sugar, chocolate sweetened with cocoa fruit pulp is about to hit supermarket shelves with food giant Nestle ready to launch its "Incoa" bar. Using cocoa fruit pulp, which is normally discarded, to flavour products reduces sugar and cuts food waste while boosting the income of cocoa farmers who can "upcycle" their cocoa by selling both the pulp and the beans.

 Mar 19 - Weekly Int'l Pepper Market Report, Week 15-19 March 2021 (IPC)
- Market this week showed a positive response as no origins were reported with a decrease. In local market, Malabar black pepper was reported with an increase of 4% when compared to the previous week, averaging at USD 4,926 per Mt. Indonesia black and white pepper were reported with an increase of 6% and 5% respectively when compared to the previous week, averaging at USD 2,493 per Mt for black pepper and USD 4,710 per Mt for white pepper. The increase of Indonesia pepper could be contributed to the increase of demand while the stock was limited. Malaysia black and white pepper were reported with an increase of 2% and 1% respectively as compared to the previous week, averaging at USD 2,501 per Mt for black pepper and USD 3,942 per Mt for white pepper.
- Viet Nam black and white pepper were reported with a significant increase of 16% and 14% respectively as compared to the previous week, averaging at USD 3,128 per Mt for black pepper and USD 4,801 per Mt for white pepper. Viet Nam pepper price has significantly kept increasing after Tet Holiday. Thus, making Viet Nam pepper market to be unpredictable as it affected processors, industrial manufactures and growers. IPC observed that the unpredictable pepper price of Viet Nam would create an unwanted effect for both sellers and buyers as it is being a risky venture.
- Furthermore, Sri Lanka black pepper was reported with an increase of 4% as compared to the previous week and was traded at an average of USD 3,051 per Mt. China white pepper was reported with an increase of 6% as opposed to the previous week and was traded at an average of USD 5,594 per Mt locally. The increase of China's pepper could be contributed to the increasing demand from China inland market whilst stock was limited. Furthermore, the cold weather in the beginning of 2021 had affected growth of pepper in China which would be estimated to result in decrease of production this year.
- International market was also reported with a positive outlook as India black pepper was reported with the same increase of 4% when compared to the previous week, averaging at USD 5,202 per Mt. Indonesia black and white pepper were reported with an increase of 5% respectively when compared to the previous week, averaging at USD 3,010 per Mt for black pepper and USD 5,479 per Mt for white pepper. Malaysia black and white pepper were reported with an increase of 2% and 1% respectively as compared to the previous week, averaging at USD 3,950 per Mt for black pepper and USD 5,300 per Mt for white pepper. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 10%, 8% and 5% respectively as opposed to the previous week, averaging at USD 3,595 per Mt, USD 3,635 per Mt and USD 5,794 per Mt respectively. China white pepper was reported with an increase of 6% as opposed to the previous week and was traded at an average of USD 5,794 per Mt.


Mar 18 -
Daily Cocoa Futures Market Report

On the first full trading day as a new second month, the Jul21 was largely under pressure after a firm opening and soon set course for GBP 1700, also the 50-day average. Here support was found from technical buying and profit taking by day traders, closing almost unchanged at GBP 1712 (-4). The structure was under pressure at the same time - May/Jul21 GBP 24 - and trades in carry from Sep 21. This should motivate funds to liquidate their long position in perspective. Against Mar21, which expired on Tuesday, a handsome 52,860mt changed hands, the most since March 2019, of which just under a third was IVC cocoa. There was also a new face among the receiving players - SLM (CITI), who have actually been more into coffee futures so far, took 20,000mt of cocoa on behalf of a client. 

Mar 18 - Indian sugar mills rush to sign export contracts as prices rally
Indian mills have contracted to export 4.3 million tonnes of sugar so far in the 2020/21 season ending on Sept. 30, a trade body said on Wednesday, as a rally in global prices to a four-year high and an export subsidy makes overseas sales lucrative. Higher exports from the world's second biggest sugar producer could cap gains in global prices, which have been buoyed by lower production in Thailand, the world's second biggest exporter

Mar 18 - New Brazil coffee crop sells faster than year ago, consultancy says
Brazilian coffee farmers sold 28% of the 2021 crop by March 10, versus the 18% they had sold by this time a year earlier, consultancy Safras & Mercado projected on Wednesday. Safras analyst Gil Barabach said the volatility of coffee prices on the ICE exchange and a weaker Brazilian currency led to moments of very high local prices for coffee in Brazil, pushing farmers to commit to larger sales ahead of the harvest.

Mar 17 - Daily Cocoa Futures Market Report

The focus yesterday was initially on the Mar 21 contract, on which 461 lots were still trading before it went off the board at noon with a loss of GBP -58 and a closing price of GBP 1834. The spread closed almost unchanged at GBP 145, at this level sporadic instore lots of even current crop are traded, but of course not in comparable quantities. For those who now take cocoa from the exchange (open interest 5.7k lots) all in all not a particularly cheap cocoa. Otherwise, futures were also under pressure, May 21 lost GBP-15/closing GBP 1737. Remains to be seen if the managed money buyers start to liquidate their long position; not unlikely given the market structure - already in carry from Sep21. Technically, there would still be room to the downside, initially to the 50-day average, currently just below the magic GBP 1700.  

Mar 17 - Brazil cracks down on coffee firms for alleged tax fraud
Brazilian authorities launched raids and issued multiple arrest warrants as part of a probe to crack down on coffee industry companies accused of evading taxes, according to prosecutors in the state of Minas Gerais on Tuesday. Coffee cooperatives, wholesalers, coffee brokers and roasters in four Brazilian states took part in the scam, the Minas Gerais prosecutors office said in a statement, adding that their actions avoided tax collection in a total value of 1 billion reais ($178.75 million).

Mar 16 - OVHcloud is currently evaluating potential technical and operational measures to bring solutions to all affected customers. All communication channels, including our incident tracking platform, can be accessed so that you can stay informed of developments in real time.

You can find the last update concerning our C3 SWAP server :

http://travaux.ovh.net/?do=details&id=49484


- SBG-1 Situation : 4 of 12 rooms were damaged
- Electrical restart : Temporarily repowered on 13th March and will be restored permanently on 16th March
- Network restart :
+ Backbone: temporary connection to SBG on 15th March
+ Internal network to be redeployed on 16th March
- Server restart : Provisional ETA: Monday, 22 March for gradual restart

Mar 16 - Daily Cocoa Futures Market Report

The expansion of the speculative long position as of 09.03. also put pressure on the market at the beginning of the week yesterday. With low volume and almost soporific speed, the May 21 futures traded at lows of GBP 1745 and ended the day with GBP -17 at GBP 1752. The said speculative long position of Managed Money (a good 70k lots long) is the highest since the beginning of the pandemic. Gross "Money" now stands at a good 94k lots. The near March / May 21 spread traded in a GBP 135/145 range with still a good 1,300 lots turnover. It remains to be seen how much cocoa will actually be tendered and taken up as a result of the good gradings. Arrivals in Côte d'Ivoire as of 14.03. stand at 1.596 million mt vs. 1.597 million mt from the previous year (-0.1%).

Mar 16 - Ivory Coast rains will improve quality of cocoa mid-crop, farmers say
Above-average rains mixed with sun last week in most of Ivory Coast's cocoa-growing regions stood to boost the quality of the April-to-September mid-crop, farmers said on Monday. Ivory Coast, the world's top cocoa producer, is in the dry season that runs from mid-November to March, when downpours are poor or scarce.

Mar 15 -
Daily Cocoa Futures Market Report

Also Friday, both markets continued to be under pressure. May 21 tested support just above GBP 1750 right from the start, but found sufficient headwinds from new level-based buying. With a narrow GBP 22 range base May 21 and the weakest volume this week (around 14k lots), the market closed the week at GBP 1769 in the evening. Seems everyone lacks motivation in light of the Mar21 contract expiring tomorrow at noon. This traded 1.25k lots with 8k lots of open interest remaining. The London grading room is working at full speed and also pushed overtime over the weekend, 171 lots received valid certificates as of Friday - so an increase of 54k mt since February 1. In total, a good 107k mt of valid stock should be available after this weekend, and more gradings are due today. The speculative long position grew by 11k lots to now around 70k lots net according to COT. 

Mar 15 - Viet Nam Pepper Prices Have Increased Significantly After Tet Holiday 2021 

In the year 2020 due to Covid-19 global demand was subdued. Despite the global pandemic markets rose so it rises in a normal year should actually not be a surprise due to people are seeing normalization of markets combined with growth. However, International Pepper Community has concerned about Viet Nam pepper markets which have risen in an unprecedented manner in the last 30 days after Tet festival. The current situation is not certain to have a good business plan. It is advisable for stakeholders to observe markets movement closely and calm down to wait for markets itself to adjust which helps avoid taking unexpected risks.

After Viet Nam Tet Holiday up to now, Viet Nam pepper local price was reported with an increase of 22% when compared to the opening price after Tet Holiday in the range of VND 62,000-75,000 per Kg. Viet Nam black pepper 500 g/l and 550 g/l were reported with an increase of 32% and 27% respectively as compared to the opening price after Tet Holiday, averaging at USD 3,700 per Mt and 3,800 per Mt respectively. Furthermore, Viet Nam pepper price in US market was reported with an increase of 31% as opposed to the opening price after Tet Holiday, averaging at USD 1.90 per Lbs.

Mar 15 - Funds cut long position in sugar futures, raise in cocoa - CFTC
Speculators reduced their net long position in raw sugar futures on ICE in the week to March 9, and again increased their long position in New York cocoa, data from the U.S. Commodity Futures Trading Commission showed on Friday. Money managers and hedge funds cut their bullish bet in raw sugar by 14,914 contracts for the period, bringing their net long position in the sweetener to 134,309 contracts.

Mar 12 - Weekly Int'l Pepper Market Report, Week 8-12 March 2021 (IPC)
- Market this week showed a mixed response with only Malaysia local price was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 1% when compared to the previous week, averaging at USD 4,715 per Mt. Indonesia black pepper was reported with an increase of 1% when compared to the previous week, averaging at USD 2,359 per Mt. Whilst, Indonesia white pepper was reported stable, averaging at USD 4,475 per Mt. Malaysia black and white pepper were reported with 1% deficit respectively as compared to the previous week, averaging at USD 2,459 per Mt for black pepper and USD 3,902 per Mt for white pepper. The decrease of Malaysia's pepper could be contributed to the weakening of Malaysian Ringgit against the US Dollar (MYR 4.11 @ USD 1), recording a 1% depreciation. Viet Nam black and white pepper were reported with an increase of 11% respectively as compared to the previous week, averaging at USD 2,697 per Mt for black pepper and USD 4,215 per Mt for white pepper. Sri Lanka black pepper was reported with an increase of 6% as compared to the previous week and was traded at an average of USD 2,924 per Mt.
- International market was reported with a rather positive outlook as India black pepper was reported with the same increase of 1% when compared to the previous week, averaging at USD 4,989 per Mt. Indonesia black pepper was reported with an increase of 1% when compared to the previous week, averaging at USD 2,857 per Mt. Whilst, Indonesia white pepper was reported stable, averaging at USD 5,217 per Mt. Contrary to the local market, Malaysia black pepper was reported with an increase of 1% as compared to the previous week, averaging at USD 3,870 per Mt. Whilst, Malaysian white pepper was reported stable, averaging at USD 5,260 per Mt. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 4%, 4% and 6% respectively as opposed to the previous week, averaging at USD 3,283 per Mt, USD 3,356 per Mt and USD 5,076 per Mt respectively.
- US market as well as European markets were reported stable with a slight increasing trend. Muntok white pepper in US Market for CF March/April was reported in the range of USD 5.300 - 5,500 per Mt.

Mar 12 - Daily Cocoa Futures Market Report

The expected firm opening of GBP +9, caused the May 21 to climb towards GBP 1800 (high GBP 1798) first thing in the morning. 2.5 days before the March 21 expiry, the March / May 21 spread was the centre of attention. The spread traded in a GBP 22 range (GBP +133/+155) on good but unexciting volume. The still open position of 11,500 lots suggests that some cocoa is being stopped. Another 4 BDU's of fresh Nigeria were under the knife yesterday, followed by 53 SDU's today. There could be one or two surprises between now and Tuesday. The May 21 ended the day with GBP +19 at GBP 1777.

Mar 12 - Sugar harvest no sweetener for Cuba's ailing economy
Hopes in Cuba that sugar exports would soften an economic slowdown and plug an exchangeable currency gap appear in vain, with state media reports of output at least 200,000 metric tons short of forecasts for the end of February. While no longer a top export and behind other foreign revenue earners such as medical services, tourism, remittances and nickel, sugar still brings Cuba hundreds of millions of dollars a year from exports, including derivatives, while also producing energy, alcohol and animal feed at home.

 

Mar 11 - Hosting company OVH data center SBG1/2 heavy outage .
The data center in Strasbourg mainly hosts web applications for companies. Our server supporting SWAP recalculation in SGB1 is safe. We have been extremely lucky. OVH advise full recovery by March 15th ! Let's hope so.

Mar 11 - Daily Cocoa Futures Market Report

Yesterday morning, with low activity and manageable volume, the downtrend seen recently continued and reached new lows at GBP 1739. By the end of the day, covering against the short position caused a recovery and the May 21 ended the day at GBP +13 at GBP 1760. 4 trading days before the Last Trading Day March 21, the March / May 21 spread widened again by GBP +10 to GBP +141. Since February, a good 35,000mt of fresh cocoa has been graded in London (of which 26,000mt in BDU form), compared with an open interest in March of 12,337 lots. This is still not enough to cover all the "longs". The race of the "shorts" for tenderable cocoa should now have come to an end

Mar 11 - Brazil's sugar production seen falling, despite new plants
Brazil's sugar production is seen falling in the new crop that starts in April after unfavorable weather reduced sugar cane development, but new sugar installations in the country should limit that fall, experts said during a conference on Wednesday. Consultancy Datagro sees Brazil's center-south sugar output falling to 36.7 million tonnes in 2021/22 (April-March) versus 38.5 million tonnes in the previous season, saying mills will crush 3.5% less cane at a total of 586 million tonnes.

Mar 10 - L'hébergeur OVH a été victime d'un lourde panne cette nuit causée par un incendie au sein de son data center de Strasbourg.
Le data center de Strasbourg héberge majoritairement des applications Web à destination des entreprises. Et c'est précisément ces dernières qui ont été touchées par l'incendie. C'est le cas de notre serveur supportant tous les calculs des pages SWAP.

Mar 10 - Hosting company OVH was the victim of a heavy outage this night caused by a fire in its data center in Strasbourg.
The data center in Strasbourg mainly hosts web applications for companies. And it is precisely these who were affected by the fire. This is the case with our server supporting all calculations of SWAP pages. We apology for inconvenience and will let you know when service is restored.

Mar 10 - Daily Cocoa Futures Market Report

Further selling pressure with manageable volume as well as a firm British pound provided yesterday for a further downward movement. The May 21 now corrected by GBP 76 (relative to yesterday's low at GBP 1746) from the uptrend highs (GBP 1822) within a few trading days. The GBP 76 correction now represents almost exactly one-third of the uptrend that began in February. May 21 ended the day at GBP -9 at GBP 1753. Industry target levels are now around GBP 100/120 below current levels, a long way to go and the Algos / Specs / Funds could still provide some support. Grading in London continues almost unchanged. Lots of work for the grading room in London before March 21 goes off the board on 16.03

Mar 10 - From land of promise to pariah state: Myanmar coup rattles foreign firms
Shortly after the military seized power, 55 foreign investors in Myanmar from Coca Cola to Facebook signed a statement committing to the country and employees there during developments of "deep concern". A month on, those pledges are being sorely tested with Myanmar's economy all but paralysed by massive anti-coup protests, widespread strikes and the junta's killing of dozens of protesters drawing calls for boycotts and sanctions.
 

Mar 09 - Daily Cocoa Futures Market Report

Exactly two highlights marked the beginning of the week yesterday. Built-up (marginal) hedge pressure from the origin over the weekend and a sluggish reaction to the expansion of the speculative long position caused the market to correct downwards by almost GBP 20 after the opening and shortly before the close. In between, the market consolidated at unchanged levels. The May 21 found tentative support at the 10-day moving average at GBP 1760, which was also yesterday's low. Closing GBP -16 at GBP 1762. Spreads (March / May GBP +143; May / July GBP +28) eased slightly on very manageable volume. Arrivals in Ivory Coast as of 28.02 are at 1.533 mt (+0.5%). Purchases in Ghana as of 18.02 are at 748,162 mt (+12.6%).

Mar 09 - U.S. government to expand biofuels forecasts as renewable diesel sector grows
The U.S. departments of agriculture and energy plan to change two closely watched monthly reports to account for the rapid growth of renewable diesel, a clean burning fuel made from soy and other fats and oils, officials told Reuters. Surging demand for renewable diesel is part of a larger global transition to green fuels, and could increase prices of crops such as soybeans and canola it is derived from.

Mar 09 - Britain's Morrisons targets supply from net zero carbon farms by 2030
Morrisons has pledged to be the first supermarket group completely supplied by net zero carbon British farms by 2030, five years ahead of the market, it said on Monday. The group is Britain's fourth biggest supermarket group by sales after market leader Tesco, Sainsbury's and Asda but is British farming's biggest customer.

Mar 09 - Ivory Coast cocoa farmers positive on mid-crop after uneven rains
Uneven rainfall across Ivory Coast's cocoa regions last week has not compromised a broadly positive outlook for the April-to-September mid-crop, farmers said on Monday. Ivory Coast, the world’s top cocoa producer, is in the dry season that runs from mid-November to March, when downpours are poor or scarce.

Mar 08 - Daily Cocoa Futures Market Report

After the sideways movement of the previous day, came on Friday, after what felt like weeks of a summit ride, now pressure on the quotes. The May 21 broke through the GBP 1800 support and ended the day with GBP -28 at GBP 1788 (low GBP 1774). Commitment of Traders show an impressive expansion of Managed Money's long position of 24,739 lots, Managed Money thus now holds 58,800 lots. The combined net position expanded by 11,641 lots to 89,073 lots net long. A look at the  forward sales figures from the current crop as of the end of February suggests that the origin has provided liquidity in the market in recent weeks and is as good as through for the current crop. A good week before the expiry of the March 21 position, the gradings continued to pick up speed. In February, 2,077 lots were graded and in the first week of March, 1,839 lots were graded. The market continues to wait for the correction in the spread...

Mar 08 - Marex sees global coffee deficit of 10.7 mln bags in 21/22
A global coffee deficit of 10.7 million bags is forecast for the 2021/22 season, driven by a sharp drop in production in Brazil, broker Marex Spectron said in a report on Friday. "Recent field trips verify the damage done to Brazil’s arabica 2021 crop. Although rainfall, since late November, has been close to normal, losses incurred during the prior period are irretrievable," the broker said.

Mar 05 - Weekly Int'l Pepper Market Report, Week 1-5 March 2021 (IPC)

- Market this week showed a mixed response with only Indonesia black pepper was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 3% when compared to the previous week, averaging at USD 4,675 per Mt. Despite Farmers in Lampung were reported keeping hold of their crop, Indonesia black pepper was reported with 4% deficit when compared to the previous week, averaging at USD 2,339 per Mt. The decrease of Indonesia's black pepper also could be contributed to the weakening of Indonesia Rupiah against the US Dollar (IDR 14,322 @ USD 1), recording a 1% depreciation. Whilst, Indonesia white pepper was reported with a slight increase of 1% as compared to the previous week, averaging at USD 4,469 per Mt. Malaysia black and white pepper were reported stable, averaging at USD 2,484 per Mt for black pepper and USD 3,948 per Mt for white pepper. Viet Nam black and white pepper were reported with an increase of 8% and 15% respectively as compared to the previous week, averaging at USD 2,420 per Mt for black pepper and USD 3,803 per Mt for white pepper. Sri Lanka black pepper was reported with an increase of 3% as compared to the previous week and was traded at an average of USD 2,754 per Mt. China white pepper was traded at an average of USD 5,075 per Mt.
- International market was also reported with a mixed response as India black pepper was reported with the same increase of 3% when compared to the previous week, averaging at USD 4,948 per Mt. Indonesia black pepper was reported with 4% deficit when compared to the previous week, averaging at USD 2,835 per Mt. Whilst, Indonesia white pepper was reported with an increase of 1% as opposed to the previous week, averaging at USD 5,211 per Mt. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 3%, 3% and 2% respectively as opposed to the previous week, averaging at USD 3,155 per Mt, USD 3,236 per Mt and USD 4,800 per Mt respectively. China white pepper was traded at an average of USD 5,275 per Mt.
- US market as well as European markets were reported stable with a slight increasing trend. Muntok white pepper in US Market for CF March/April was reported in the range of USD 5.300 - 5,500 per Mt.

Mar 05 - Daily Cocoa Futures Market Report

It was not a slam on the brakes, but rather a cautious halt, but at least the rally of the past nine days did not continue yesterday. The May 21 term closed slightly weaker at GBP -9 at GBP 1806 - still above the GBP 1800 support. The further - probably speculative - buying indicated by anincreased open interest did not bring much support and further faced a firmer British pound. The structure came under some pressure - although the front spread is valiantly holding its GBP 160 premium, the May/Jul 21 lost 10 points, which should be a tentative bea-rish signal. And the market is overbought. Origin continues to appear in the market with pre-sales only of the new 2021/22 main crop (which is about time) for now several days , but not anymore for the upcoming mid-crop. This is expected soon, however, which should bring additional pressure on the prices.

Mar 05 - India merchants almost halt exports to Iran as its rupee reserves fall - officials
Indian merchants have almost entirely stopped signing new export contracts with Iranian buyers for commodities such as rice, sugar and tea, due to caution about Tehran's dwindling rupee reserves with Indian banks, six industry officials told Reuters. "Exporters are avoiding dealing with Iran since payments are getting delayed for months," said a Mumbai-based dealer with a global trading house.

 Mar 04 - Daily Cocoa Futures Market Report

The break of the previous day was short-lived. Albeit at a throttled pace, the appetite for fresh speculative longs does not seem to be waning. The May 21 broke through its November highs (GBP 1814) to post a high of GBP 1822 and a close of GBP 1815 (GBP +14), the highest levels since late September last year. Despite another BDU Cameroon and 3 more for today's sampling, the March / May 21 spread widened to a premium of GBP +160. Specs / Funds are believed to be holding a speculative long position of around 50,000 lots as of yesterday, the maximum over the last year has been just over 60,000 lots. A little air to the top seems to be still in addition, the near inverse structure and the lack of hedge pressure should be only conducive.

Mar 04 - India's Oct-Feb sugar output jumps 20%, few mills close early - trade body
Indian sugar mills' output rose by a fifth to 23.38 million tonnes in the first five months of the 2020/21 marketing year from a year earlier, while a few mills closed operations ahead of normal schedule, a trade body said on Wednesday. The country is the world's second biggest sugar producer and the higher output could weigh on global prices.

Mar 04 - Global coffee exports dip 3.4% in January, but rise in first four months of season - ICO
Coffee exports fell by 3.4% in January 2021 versus a year ago, but exports in the first four months of the 2020/21 season (October-September) rose 3.7%, the International Coffee Organisation (ICO) said on Wednesday. The intergovernmental organisation said exports in the first four months, which totalled 41.9 million bags versus 40.9 million, rose primarily thanks to a 21.9% surge in shipments from top producer Brazil.

 Mar 03 - Daily Cocoa Futures Market Report

After the GBP 170 gains of the recent trading days, there seems to be signs of respite, at least the rally did not continue yesterday, the May 21 initially lost slightly on profit-taking and found support at GBP 1782, closing at GBP 1801 (+5).However, caution is still advised on any premature analysis: the Mar21/May21 spread continued to widen to GBP +152 - although it had lost to GBP 121 in the meantime - and continues to defy the ongoing gradings. These add up to 15k mts since early February; questionable if this is enough to actually allow the Mar/May21 spread to collapse. By the time Mar21 expires on 3/16, we will know. Meanwhile, the CCC in Côte d'Ivoire has reportedly sold between 80 and 100k mts of the upcoming 2021/22 main crop in the past two weeks, but at steep discounts.

Mar 03 - Ivory Coast sells almost 100,000 T of 2021/2022 cocoa at small discount 
Ivory Coast started selling cocoa contracts for the 2021/22 season two weeks ago, six months later than usual, because it needed to clear stocks from the previous harvest, sources from the industry regulator and exporters said on Tuesday. The sector regulator in the world's top producer, the Cocoa and Coffee Council (CCC), has sold between 80,000 and 100,000 tonnes, with a discount of 100-200 British pounds ($139 -$278) on the premium for cocoa from Ivory Coast, the sources said.

Mar 03 - Brazil's Cosan issues $113 mln in new shares as part of restructure
Brazilian sugar and ethanol producer Cosan SA will issue roughly 638 million reais ($113 million) of new share capital to fully incorporate shareholders of subsidiary Cosan Logistica SA, the company said on Tuesday. In December, Cosan said it planned to undergo a reorganization and list American Depository Shares, or ADSs, for the first time.

Mar 03 - U.S. coffee roasters weigh price increases, cite shipping inflation
Coffee processors in the United States, the world's largest consumer of the beverage, are reporting significant cost increases in their operations, mostly related to transportation, and expect to raise retail prices soon. Mid-sized and smaller roasters, particularly specialty coffee companies, have been hit hardest, company executives said, but even larger companies such as Peet's and JM Smucker Co say they are coping with higher costs.
 

Mar 02 - Arabica coffee slips as Brazilian currency extends fall

Arabica coffee futures on ICE were lower, weighed down partly by weakness in Brazil's real which dropped to a fresh four-month low of 5.5986 against the US dollar due to the country's fiscal woes and worries about a return to populist policies by the government.

The benchmark May arabica contract settled down 2.55 cents, or 1.8%, at 137.50 cents per pound on Friday (February 26), after peaking at 140.45 cents on Thursday, its highest level since December 2019. The trading range was 135.55 to 139.65 cents. July was down 2.55 cents as well, at 139.30 cents. The rest of the board shed 2.35-2.75 cents. Trading volume rose to 58,631 lots from 56,690 a day earlier.

Dealers said there had been a pick-up in producer selling following the rally, with the weakness of Brazil’s currency adding to the attractiveness of prices in the world’s top grower and exporter.

Widespread rains in Brazil’s arabica coffee belt also provided a bearish tone, although earlier dry weather will have dented the upcoming crop.

Mar 02 - Chinese fresh ginger prices may stop rising in H2 2021 following a surge in 2020

China’s huge price increase in 2020 has encouraged the 2021 planting. 2020 saw the highest price point since 2014. In Shandong’s Changyi, the wholesale price of CNY11.4-11.7 per kilos (USD1.67-1.72/kg) in July 2020 rose to CNY19/kg in October, up 67%, doubling the price compared with the same period of the preceding year.

China’s 2020 planted areas were estimated at 310,667 hectares (4.7 million mu), up about 12% from 2019. While the ginger seedling sales season has started, farmers seem enthusiastic in increasing the planted areas as they made good profits in 2020.

The 2021 production is expected to grow, assuming good weather conditions. IHS Markit thinks the wholesale price in H2 2021 may be under pressure given the anticipated enlarged cultivation. The expected easing sea freight rates in H2 may help reduce the export price.

On 23 February 2021, Changyi’s the wholesale price is CNY7.0-9.0/kg, mostly CNY8.0/kg. In the same period of 2020, the average wholesale price was CNY8.2-8.8/kg.

A local vendor told IHS Markit that the wholesale price has been stable after the Lunar New Year.

China accounts for over 80% of UK’s imports. In 2020, the UK received nearly 20,000 tonnes of Chinese ginger, up 3% y-o-y, at a price of USD1,790/tonne cif, up 37% y-o-y.

 

Mar 02 - Daily Cocoa Futures Market Report

Further buying by the specs / funds, as well as only marginal to barely visible hedge pressure from the origin, led to no respite in the market's current upward momentum. The May 21 made its way to the November highs (GBP 1814) with a high of GBP 1810 and ended the day at GBP +28 at GBP 1796. The March / May 21 spread continues to hold firm around GBP +141, the May / July 21 spread widened to a premium of GBP +62. No wonder that the algos / funds interpret this as a clear buy signal. The question is where should, especially in May 21, the hedge pressure then come from? Arrivals in Ivory Coast as of 28.02 are at 1.525 mt vs. 1.545 mt from last year (-1.3%). Grading activity continued with a fresh BDU Cameroon and a BDU fresh Ivory, influence on the market not visible so far....

Mar 02 - Egypt has enough sugar reserves for 10 months - official
Egypt has enough sugar reserves for 10 months and is expected to produce three million tonnes in 2021, an agriculture ministry official told Reuters on Monday. The expected production will help Egypt to approach self-sufficiency of sugar this year, Mostafa Abdel Gawad, head of the ministry's sugar crops council added.

Mar 02 - Delivery at expiry of ICE's March raw sugar contract near 900,000 T
The physical delivery of sugar against the expiry of the March contract at ICE Futures U.S. reached 17,582 lots, or 893,216 tonnes, with points of delivery including Brazil, India, Mexico and Central American countries, the exchange said on Monday. The official number is close to traders' estimates on Friday. It was a smaller volume than a year ago, when the March delivery reached 18,820 lots.

Mar 02 - Ivory Coast cocoa farmers bullish about mid-crop despite poor rains
Rainfall was poor last week in most of Ivory Coast's cocoa regions, but good soil moisture content from previous rains left farmers optimistic for the upcoming mid-crop harvest. Farmers across the country, the world's top cocoa producer, told Reuters on Monday that medium and large-sized pods were ripening on the trees and that harvesting would start soon.

Mar 01 - Daily Cocoa Futures Market Report

Despite the temporary weakness of GBP, which lost almost 1% against USD and EUR overnight, London came under pressure at the start of the trading session. However, the May 21 term soon found support and tested lows at GBP 1741, just below the previous day's close. From there, the weekly firming continued, on balance GBP +19/close GBP 1768 May 21. CoT as of 2/23 show an increase in the net long position of +6k lots (total 77k lots), of which only 3k were through specs (total 34k lots). Côte d'Ivoire is said to have actually resolved its outstanding sales of the current main crop and was only in the market for the 21/22 crop. Given the higher market level, this could continue, which would support the further inverse market structure and could attract new speculative buying. Counter-pressure, however, continues to be provided by the ongoing gradings and the expectation of larger surpluses. 

Mar 01 - ICCO sees global cocoa surplus of 102,000 T in 2020/21
The International Cocoa Organization (ICCO) on Friday forecast a global cocoa surplus of 102,000 tonnes in the 2020/21 season, which runs from October to September. The inter-governmental body was issuing its first forecast for the current season in a quarterly update.

Mar 01 - Sugar hedging by Brazilian mills way ahead of average - report
The volume of sugar Brazilian mills have hedged using futures contracts in New York has soared to 80.5% of their expected exports in the 2021/22 season, way ahead of average for this time of the year, according to a report released on Friday. Archer Consulting, a firm that advises sugar companies on hedging strategies, said mills in Brazil have also advanced on price fixation for the 2022/23 crop, hedging around 25% of their projected exports for that season.

Mar 01 - Funds raise long position in soft commodities, says CFTC 
Speculators increased their net long position in raw sugar, arabica coffee, cocoa and cotton futures on ICE in the week to Feb. 23, data from the U.S. Commodity Futures Trading Commission showed on Friday. Money managers and hedge funds boosted their bullish bet in raw sugar by 17,954 contracts in a week when the product touched its highest price in nearly four years on ICE. Funds' long position in the sweetener is now at 162,672 contracts.

Feb 26 - Weekly Int'l Pepper Market report, Week 22-26 February 2021 (IPC)
- Market this week showed a mixed response with only Indonesia was reported with a decrease. In local market, Malabar black pepper was reported with an increase of 2% when compared to the previous week, averaging at USD 4,545 per Mt. Indonesia black and white pepper were reported with 1% deficit respectively when compared to the previous week, averaging at USD 2,442 per Mt for black pepper and USD 4,424 per Mt for white pepper. The decrease of Indonesia's pepper could be contributed to the weakening of Indonesia Rupiah against the US Dollar (IDR 14,129 @ USD 1), recording a 1% depreciation. Malaysia black and white pepper were reported stable, averaging at USD 2,492 per Mt for black pepper and USD 3,962 per Mt for white pepper. As market resume after Têt Holiday, Viet Nam black and white pepper were reported with an increase of 3% and 8% respectively as compared to the previous week, averaging at USD 2,246 per Mt for black pepper and USD 3,302 per Mt for white pepper. Sri Lanka black pepper was reported with an increase of 2% as compared to the previous week and was traded at an average of USD 2,682 per Mt.
- International market was also reported with a mixed response as India black pepper was reported with the same increase of 2% when compared to the previous week, averaging at USD 4,822 per Mt. Indonesia black and white pepper were reported with 1% deficit respectively when compared to the previous week, averaging at USD 2,955 per Mt for black pepper and USD 5,164 per Mt for white pepper. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase of 6%, 6% and 5% respectively as opposed to the previous week, averaging at USD 3,075 per Mt, USD 3,156 per Mt and USD 4,170 per Mt respectively.

Feb 26 - Daily Cocoa Futures Market Report

Caused by, once again, fresh speculative new longs continued the rally of the current trading week. The May 21 gained GBP 45 at the peak and traded at highs of GBP 1756. Closing price GBP +38 at GBP 1749 and thus the highest close since early December 2020. The March 21 scratched at the high of GBP 1900 at the next important strike level of the March 21 options expiring today. Here, some fireworks can be expected today as well. The March / May 21 spread widened to a premium of GBP +147 by the end of the day. Despite the GBP 120 rally of the last few days, cocoa continues to lag behind the other commodities in performance. The industry continues to sit on a fairly com-fortable price cover of just over 7.5 months, patiently waiting for new forward sales from the origin.

Fev 26 - ISO sees wider 2020/21 global sugar deficit at 4.8 mln T
The International Sugar Organization (ISO) on Thursday forecast a wider than previously expected global sugar deficit of 4.8 million tonnes in the 2020/21 season. The inter-governmental body had previously forecast a deficit of 3.5 million tonnes for the current season.

 Feb 25 - Colombia to produce 6 mln 60-kg bags of coffee in H1 2021 - coffee federation 
Colombia is set to produce just over 6 million 60-kilogram bags of coffee in the first half of the year, the national coffee federation said on Wednesday, below the output recorded in the first half of 2020 due to weather conditions.  The Andean country, the world's top producer of washed arabica, will produce 6.06 million bags of coffee through June, the federation said in a statement.

Feb 25 - Daily Cocoa Futures Market Report

After an unchanged opening, only a rather small circle traded in London for the first half of the day with volume just 1000 lots. It was not until New York opened that both markets found support from speculative buying, with the second month peaking at GBP 1712, this time leaving resistance at GBP 1700 behind until the close (May 21 GBP 1711; GBP +14). The front spread in London converged to GBP 127, not surprising in light of ongoing gradings. Otherwise, the overall structure remained unchanged. Despite the stabilisation, it is difficult to believe that it will last for long, at least if one argues from a fundamental perspective. The bearish environment remains: Surplus expected at 200k mt, the coming Côte d'Ivoire crop still hardly pre-sold, and furthermore 100k mt of the current crop still to be sold. 

 Feb 25 - Cocoa producers Ivory Coast, Ghana, others should join forces to control supplies - ICCO
Top cocoa producers Ivory Coast and Ghana need to control supplies and join forces with other producing countries if they want to achieve higher prices, the head of the International Cocoa Organisation (ICCO) said. Speaking at the Chocoa sustainable cocoa conference, Michel Arrion said Ivory Coast and Ghana recently acknowledged the need to control cocoa supplies, but they could be scuppered if other producers increase output.

Feb 24 - Daily Cocoa Futures Market Report

Promptly after the opening, the fortification of the last few days continued. The May 21 achieves a new 4 week high at GBP 1713, corrected in the afternoon (low GBP 1678), only to end the day almost unchanged at GBP +1 at GBP 1697. The firm British pound and the 100,000mt from the Ivory Coast mentioned yesterday, which must be remarketed in the current crop, hang over the market, but until long without the necessary pressure. The March / May 21 spread traded at a peak yesterday of GBP +142. Contrarily, grading activity in both markets continues to increase against the March position. In London, 2 more BDU's (Cameroon) , 4 LDU'S (Nigeria) and 56 SDU's (Ivory) were under the knife and approved. With the tentative build up of possible exchange stocks, there is hope among some market participants for a possible carry structure and a drop in quotations. March will tell...

Feb 24 - Global coffee supply deficit seen up on lower Brazil output - report
The global coffee market is expected to experience a larger deficit in the 2021/22 season than initially projected, as output in main supplier Brazil is seen smaller due to below-average rains, according to a report released on Tuesday. Dutch bank Rabobank, which has a strong footprint in the agricultural sector, said it now projects a global balance supply deficit of 2.6 million 60-kg bags in 2021/22 compared with 1.1 million bags seen in December.

Feb 24 - England's sugar beet sector needs gene-editing - minister
Gene-editing could play a key role in England's sugar beet sector, Britain's farming and environment minister George Eustice said on Tuesday, reiterating his support for easing regulations covering the technology. Eustice told the annual conference of the National Farmers Union that the sugar beet sector has faced major problems this year with virus yellows which is spread by aphids and can severely cut beet yields and decrease sugar content.

Feb 24 - Ivory Coast to launch agricultural commodities exchange in March

Ivory Coast's new agricultural commodities exchange will begin operations late next month by listing of raw cashew nuts, kola nuts and corn, its chief executive said on Tuesday.  Housed in the regional securities exchange, the commodities exchange was created to provide a reliable market for products whose sales are now negotiated directly between buyers and sellers. 


Feb 23 -
Daily Cocoa Futures Market Report

After its brief trip to the lower end of the range last week, the market completed a U-turn on Friday and headed for the upper end around GBP 1700 May 21, but was unable to break it. Nevertheless, May 21 continued to gain in the end and closed at GBP 1696. A revitalization of speculative buyers, who had been rather sluggish in the past weeks, was the reason for a gain of 63 points within two trading days. The question remains whether the increase in the speculative long position will continue. After GBP 1700, technically the next resistance would be at GBP 1730. All in all, any movement is taking place in an absolutely bearish environment. Firm GBP, plentiful rains in West Africa where Côte d'Ivoire still has to/wants/needs to sell 100k mt despite large discounts on current crop contracts. Further BDUs (2 Cameroon, 2 Nigeria) were successfully graded yesterday.

Feb 23 - Ivory Coast seeks to sell 100,000 tonnes of cocoa as buyers haggle
Ivory Coast's cocoa regulator is seeking to sell around 100,000 tonnes of cocoa held by domestic traders who had bought the beans from farmers but lack access to the international export market, industry sources said on Monday. The Cocoa and Coffee Council (CCC) regulator is offering the beans with a discount of around 200 British pounds ($280.40) to 250 pounds per tonne, but buyers are demanding bigger discounts because of a supply glut.

Feb 22 - Jump in oil, sugar prices highly influences on inflation expectations - Bank of Russia
The sunflower oil, sugar and potato price spikes has played a major role in degradation of inflation expectations of households for a year in advance, the Bank of Russia says in its monetary policy report on Saturday.
"The spike in sunflower oil, sugar and potato prices has played a great role in degradation of households’ inflation expectations for a year in advance," the regulator noted.
The potato price hike in the fourth quarter was predominantly driven by the contraction in the supply for this product. Lower harvest and poor harvest quality resulted in the annual price growth for potatoes from 8.71% in September 2020 to 37.6 in January 2021, the Central Bank said.
Fruits and vegetables prices are generally characterized by high volatility, the regulator added.
On December 16, 2020, Russian Ministries of Agriculture and Industry, suppliers and retailers signed agreements on sugar and sunflower oil price reduction, effective until the end of the first quarter of 2021. Documents were signed in particular with key producers accounting for more than 90% of the sugar market and more than 85% of the sunflower oil market. Retail chains and industry unions and associations also act as the parties to agreements.

Feb 22 - Daily Cocoa Futures Market Report

If the market traded in a range of GBP 1630/1635 until midday, the official opening in New York destroyed any thoughts of an early weekend. Covering against the speculative short position sent London to highs of GBP 1665, the near March / May 21 spread widened to a high of GBP +127. Closing May 21 London GBP +27 at GBP 1660, back in the upper segment of the range of the last 2 weeks. As of Feb 16, there was a marginal change in the combined long position from -798 lots to 71,005 lots net long. Managed Money reduced gross 2003 lots of its longs and added 4144 lots of fresh shorts.

Feb 22 - EU envisages 1 bln euros aid to Ivory Coast to meet sustainable cocoa laws
The European Union envisages providing around one billion euros over six years to aid Ivory Coast's cocoa sector as it adapts to EU supply chain laws due to be introduced later this year, its envoy in Abidjan said on Friday. "In the context of our future programming for 2021-2027, the EU is envisaging a Team Europe initiative which could mobilise up to one billion euros to accompany Ivory Coast in the transition towards sustainable cocoa production," EU Ambassador to Ivory Coast Jobst von Kirchmann said in an interview.

Feb 22 - Texas faces at least $300 million in citrus losses to storm
Texas, the No. 3 U.S. citrus state, faces crop losses of at least $300 million due to this week's unusual winter storm, Governor Greg Abbott said in a letter asking for assistance from the U.S. Department of Agriculture. The damage could further pressure food inflation, which is on the rise around the world due to hoarding of staple crops and supply chain disruptions related to the COVID-19 pandemic.

Feb 19 - Int'l Weekly Pepper Market Report, Week 15-19 February 2021 (IPC)
- Market this week showed a rather positive outlook. In local market, Malabar black pepper was reported stable at an average of USD 4,469 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively when compared to the previous week, averaging at USD 2,465 per Mt for black pepper and USD 4,465 per Mt for white pepper. Malaysia black and white pepper were reported stable, averaging at USD 2,495 per Mt for black pepper and USD 3,967 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were also reported stable, averaging at USD 2,187 per Mt for black pepper and USD 3,049 per Mt for white pepper. Sri Lanka black pepper was reported with an increase of 1% as compared to the previous week and was traded at an average of USD 2,620 per Mt.
- International market was also reported with a rather positive outlook as India black pepper was reported stable at an average of USD 4,744 per Mt. Indonesia black and white pepper were reported with an increase of 1% respectively when compared to the previous week, averaging at USD 2,983 per Mt for black pepper and USD 5,213 per Mt for white pepper. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were also reported stable and unchanged.
- US market was reported with an increasing trend as market reopened after the Chinese New Year holiday. Muntok white pepper in US Market for CF February/March was reported at USD 5.200 per Mt.

Feb 19 - Daily Cocoa Futures Market Report

With a close at GBP 1633 May 21 (+/- 0), the psychological 1600 mark is within reach, but support would technically still manifest GBP 15 above it for now. Volume and range (yesterday GBP 10) appear unmotivated. However, the approaching Last Trading Day of Mar21, which continues to trade against May 21 at a handsome premium of GBP 117, suggest some movement. Supported by the firm British pound against EUR and USD and the arbitrage continues to recover (GBP -77 May/May), expected tenders against Mar 21 NY and speculative sales of the managed money faction there should continue to bring the arbitrage together. All in all, an increasingly bearish overall situation. Gradings in London need to be watched closely. Yesterday, two more BDU Cameroun passed. Not surprisingly, the origin did not show up in the market given the levels. 

Feb 19 - Ivory Coast lost 47,000 hectares of forest to cocoa production in 2020, environmental group says
Ivory Coast lost 47,000 hectares (116,000 acres) of forest in its cocoa-growing regions in 2020, an environmental group said on Thursday, despite industry pledges to halt deforestation. The West African country is the world's top cocoa producer but has lost more than 85% of its forest cover since 1960, mainly due to cocoa farming, according to the government.

Feb 18 - Daily Cocoa Futures Market Report

A further firm British pound, hedging pressure from the origin and speculative selling provided yesterday for the long overdue breakout attempt from the range last seen. The May 21 hit new 4-week lows at GBP 1632 and ended the day at GBP -12 at GBP 1633. New York was much weaker on the move, hitting new 3-month lows at $2371 (closed $2374/$-54). Arbitrage continued to run together with GBP -81 LDN discount vs, NY. Grading activity is picking up in London, yesterday 2 BDU's Cameroon (1 approved / 1 failed) were under the knife. Today the results of 2 more BDU's are expected. But, similar to what was seen in New York, this does not interest the close March / May 21 spread, this widened yesterday to a premium of GBP +119. The ICCO sees a 100,000mt surplus for the current 20/21 crop.

Feb 18 - Cocoa market to record 100,000 tonne surplus this season - ICCO

The global cocoa market will record a surplus of about 100,000 tonnes in the current 2020/21 season that runs through to end-September, the International Cocoa Organisation (ICCO) said in a monthly report. That compares with a surplus of 19,000 tonnes which the intergovernmental body estimated for the 2019/20 season last December.

 Feb 17 - Daily Cocoa Futures Market Report

The UK's relatively stringent vaccination policy compared to other countries continues to give strength to the British pound, and so the market came under pressure once again yesterday. However, it should be noted that the big step is still missing, despite respectable volume (30k). Cause for this certainly also the participation of NY after the long weekend. The guardrails GBP 1700/1620 basis May 21 continue to hold; in fact, yesterday it only reached a range of GBP 25 with highs of GBP 1666, far below the psychological resistance GBP 1700. In the end, Monday's gains were - not surprisingly - erased and May 21 closed GBP 17 down at GBP 1645, whereas the front month Mar 21 lost only 9 points three and a half weeks before Last Trading Day. The spread thus continues to widen (GBP 110), whereas two more BDUs were graded yesterday, however. These will probably not be the last. 

Feb 17 - Sugar group Tereos' earnings rise, faces headwinds in coming year
Sugar group Tereos on Tuesday reported higher third-quarter core earnings on the back of improving sugar prices, but the French company said factors including the coronavirus pandemic and a weak Brazilian real would curb profits in the year ahead. Tereos, the world's second largest sugar maker by volume, is currently reviewing its strategy after a change of leadership in December that followed a legal tussle between former management and some of its cooperative members.

Feb 17 - Australia's Treasury Wine to overhaul business, sell assets as Chinese tariffs bite
Treasury Wine Estates plans a major overhaul of its business that includes the likely sale of low priority brands and other assets, aiming to gain at least A$300 million ($230 million) as it reels from the impact of steep Chinese tariffs on Australian wine. The restructuring was unveiled on Wednesday as the world's largest listed winemaker reported a 43% slump in first-half net profit to A$120.9 million ($94 million) and cut its interim dividend by a quarter to 15 Australian cents per share.

Feb 16 - Daily Cocoa Futures Market Report

Without the participation of the New York market, it was the expectedly laborious and tough event in yesterday's trading. A firm British pound provided resistance, which failed any timid attempt to overcome the upper end of the range around GBP 1680 May 21 (high yesterday GBP 1677). Closing price May 21 still GBP +15 at GBP 1662. Participation continued to leave much to be desired; only in the late afternoon could a little more volume be found, but ultimately was just enough for a total of 17k lots, of which the bulk (around 80%) was traded in the front two spreads. The structure also remains unchanged with a premium in the front Mar21/May21 - spread around GBP 100, just under four weeks before the Mar21 contract expires, and the following May/Jul21 - spread trades at GBP 23. Arrivals in Ivory Coast stand at 1.439m mt (-2.4%) as of 14.2.

Feb 16 - Dry weather and heat threaten Ivory Coast's cocoa crop
Dry weather and heat last week in Ivory Coast's central cocoa-growing regions threatened to reduce the quantity and quality of the April-to-September mid-crop, farmers said on Monday, while conditions remained good in other regions. Ivory Coast, the world's top cocoa producer, is in its dry season, which runs from mid-November to March, when downpours are scarce. 

Feb 15 - Daily Cocoa Futures Market Report

Moderate volume on Friday and a stable expensive British pound brought kei-ne new insights also at the end of the week. The May 21 opened unchanged and received little new impetus during the day, came under pressure in the second half of the day and still lost 7 points to close at GBP 1649. The com-mittments of traders show a tentative reduction of the speculative long position, which decreased by 3.3k lots to now 37k lots. Overall, however, the long position is still just under 72k lots, notably as of Tuesday, i.e. in relation to New York before the First Notice Day, the expiration of the first month of Mar 21 on 12.2.21. It can be assumed that the position has not changed significantly on balance, especially with regard to the funds, since we are in an inverse market structure. We thus remain in a range of GBP 1620 at the lower end and just under GBP 1700 at the upper end base 2 month May 21. 

Feb 15 - Ivory Coast arrests three suspected child traffickers in cocoa belt
Ivory Coast police have arrested three suspected child traffickers in the western town of Soubre, the centre of its cocoa-growing region, a police official said on Friday. The three Burkinabe nationals were taken into custody at a roadblock on Thursday when their bus was stopped for routine controls, said police commissioner Luc Zaka, who heads a specialized unit dealing with child labour.

Feb 15 - Funds cut long position in sugar futures, raise in cotton - CFTC
Speculators reduced their net long position in raw sugar futures on ICE in the week to Feb. 9, and raised their bullish bet in cotton, data from the U.S. Commodity Futures Trading Commission showed on Friday. Money managers and hedge funds cut their bullish bet in raw sugar by 10,247 contracts for the period, bringing their net long position in the sweetener to 139,650 contracts.

Feb 12 - Today is New Year for many Asians:

Happy Losar to Tibetan friends; Happy Tet to Vietnamese friends; Happy Seollal to Korean friends; and Happy Lunar New Year to Chinese friends. Wish you all a prosperous year 2021.

Feb 12 - Weekly Int'l Pepper Market Report, Week 8-12 February 2021 (IPC)

- Market this week showed a mixed response with only Sri Lanka black pepper was reported with a decrease. In local market, Malabar black pepper was reported stable at an average of USD 4,462 per Mt. Indonesia black and white pepper were reported stable, averaging at USD 2,429 per Mt for black pepper and USD 4,429 per Mt for white pepper. Malaysia black and white pepper were reported with an increase of 1% respectively as compared to the previous year, averaging at USD 2,487 per Mt for black pepper and USD 3,953 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were reported stable, averaging at USD 2,186 per Mt for black pepper and USD 3,048 per Mt for white pepper. Sri Lanka black pepper was reported with 1% deficit as compared to the previous week and was traded at an average of USD 2,603 per Mt.
- International market was reported with a rather positive outlook as India black pepper was reported stable at an average of USD 4,736 per Mt. Indonesia black and white pepper were reported stable, averaging at USD 2,941 per Mt for black pepper and USD 5,172 per Mt for white pepper. Malaysia black and white pepper were reported with an increase of 4% respectively as compared to the previous week, averaging at USD 3,850 per Mt for black pepper and USD 5,250 per Mt for white pepper. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and unchanged.

Feb 12 - Export of Pepper Report by MADAGASCAR (IPC)
- Madagascar, officially the Republic of Madagascar is an island country in the Indian Ocean, approximately 400 kilometers off the coast of East Africa. Madagascar is one of the producers of pepper in the world and actively export pepper to various countries.
In 2018, Madagascar was reported to have exported a total of 3,313 Mt of pepper which 90% or 2,986 Mt of it comprised of whole pepper and 10% or 328 Mt of it ground pepper. Madagascar on average exported a total of 276 Mt per month in 2018 which peaked in January with 538 Mt. The total revenue of Madagascar's export of pepper in 2018 was reported to be as high as USD 9.2 Million. Thus, recording an average price of the total pepper exported by Madagascar at USD 2,824 per Mt for whole pepper and USD 2,467 per Mt for ground pepper.
- Year 2019 saw an increase in term of quantity of pepper exported by Madagascar. Madagascar was reported to have exported a total of 3,696 Mt which 98% or 3,639 Mt of it comprised of whole pepper and 2% or 57 Mt of it ground pepper, recording an increase of 12% when compared to 2018. The average export of pepper by Madagascar in 2019 was reported to be 308 Mt per month which peaked in October with 620 Mt. Although increasing in term of quantity, Madagascar's revenue from pepper export was reported with a decrease of 23% as compared to the previous year to a total of USD 7.1 Million. Thus, recording an average price of the total pepper exported by Madagascar at USD 1,919 per Mt for whole pepper and USD 2,079 per Mt for ground pepper or a decrease of 32% and 16% respectively as compared to 2018.
- As of December 2020, Madagascar was reported to have exported a total of 4,578 Mt which 95% or 4,344 Mt of it comprised of whole pepper and 5% or 234 Mt of it ground pepper. Thus, recording an increase of 24% when compared to the same period in 2019. As of December 2020, the total revenue of pepper export by Madagascar was reported to have reached USD 8.6 Million, recording an increase of 22% as compared to the same period in 2019. The average price of the total pepper exported by Madagascar as of December 2020 was reported to be USD 1,961 per Mt for whole pepper and USD 670 per Mt for ground pepper or an increase of 2% for whole pepper and a decrease of 68% for ground pepper as compared to 2019.
- Pepper from Madagascar is traded worldwide with most of them being Asian countries. As of December 2020, Madagascar's top 5 country destinations for its pepper were reported to be United Arab Emirates with 576 Mt (an increase of 31% as compared to the same period in 2019), Pakistan with 558 Mt (an increase of 77%), India with 459 Mt (an increase of 353 Mt), France with 389 Mt (stable and unchanged) and Egypt with 290 Mt (an increase of 4%).

Feb 12 - Daily Cocoa Futures Market Report

With today's First Notice Day of the March 21 position in New York, attention was again on the structure of the market yesterday. The March / May spread in NY collapsed from a premium of $195 to a discount of $-15, funds that in the last minute rolled their position, combined with shorts, in order to still tender against the March? A dangerous / expensive play. London followed suit, coupled with a strong local currency. The May 21 ended the day GBP -13 at GBP 1656 with the close spread converging to GBP +83. The May / May 21 arbitrage also came under pressure with a discount of GBP -107 (previous day GBP -132). From next week, the focus should be (for now) back on fundamental factors. New York will be closed on Monday (Presidents Day).

Feb 12 - India's sugar exports to drop more than 24% in 2020-21 - trade body
India's sugar exports are likely to drop more than 24% in the current year to September due to logistical constraints such as a shortage of containers and congestion at the country's ports, a leading trade body said on Thursday. India, the world's second biggest sugar producer after Brazil, is likely to sell 4.3 million tonnes of the sweetener on the world market in the 2020-21 season against 5.7 million tonnes shipped in the previous year, said R.P. Bhagria, chief executive of the All India Sugar Trade Association (AISTA). 

Feb 12 - U.S. trade body rules that blueberry imports do not harm industry 

A powerful U.S. trade agency ruled on Thursday that blueberry imports are not causing serious injury to domestic producers, dismissing complaints from Florida and Georgia farmers, and will not recommend further action to reduce foreign supplies. In recent years, U.S. producers have claimed damages from what they argue are unfair trade practices by large exporters such as Mexico, which send more than $13 billion in fresh produce to the United States annually. 

Feb 12 - Digging for victory: Algeria turns to bananas in trade gap battle
Faced with dwindling energy revenues and costlier imports, Algeria's government is turning to farmers like Mostefa Mazouzi to help narrow its trade gap - so it's lent him a hectare of land on condition he use it to grow bananas. Mazouzi, who already owns a tomato farm, has built greenhouses and already harvested a banana crop on the new land near the Mediterranean coast.

Feb 11 - Daily Cocoa Futures Market Report

The firmer British pound could not bring the market under pressure, the early purchases after slightly higher opening, on the other hand, also did not bring great support. Throughout the day, prices meandered through the board almost unchanged on miserable volume, and everything pointed to an unexcited trading day. Only in the last hour, the market came to life and was able to gain after all (GBP +19 basis May 21, close GB 1669). The focus was yesterday, however, on the origin: With a hefty reduction of the origin differential on the contracts of the coming mid-crop, the CCC yesterday, so to speak, officially acknowledged the sluggish pre-sales. The price per ton was reduced from a premium of around GBP 70 via ICE London to GBP -250 discount, i.e. GBP 320 cheaper. This, mind you, plus LID of around GBP 305 ($400).

Feb 11 - Global sugar surplus projected for 2021/22 season – TRS
The global sugar market is expected to shift into surplus in the 2021/22 season, driven partly by higher production in Thailand and India, Tropical Research Services (TRS) said in a report. TRS projected a surplus of 5.18 million tonnes, raw value, compared with a deficit of 2.07 million in 2020/21, on an October to September basis.

 
Feb 11 - Ivory Coast slashes cocoa quality premium to revive weak sales
Ivory Coast has reduced a quality premium that cocoa exporters pay for the mid-crop harvest by 320 pounds ($443) per tonne to turn it into a discount, in an effort to revive weak sales during the COVID-19 pandemic, according to eight sources. The premium of 70 pounds per tonne has been cut to -250 pounds, or a discount of 250 pounds, by the Coffee and Cocoa Council (CCC), the two CCC sources and six industry sources told Reuters.
 
 

Feb 10 - Daily Cocoa Futures Market Report

Although the quotes yesterday showed quite unmoved (range May 21 GBP 22), but appearances are deceptive. After the rally of March / May 21 last week in New York, the spread also moved yesterday in London. March / May 21 gained GBP 20 at the peak and traded up to a premium of GBP 105. Fundamental factors can not discover behind this, but there is enough cocoa and the current  market stocks in Europe do not sparkle with attractiveness to absorb. One would not like to be caught currently only "short" in March 21 with  unsold main crop and this then, with a three-digit premium, into May 21 to roll.
May 21 ended the day at GBP -7 at GBP 1650 and remains in consolidation mode for now

Fob 10 - Brazil coffee exports fall 8% in January - industry group
Brazil exported 2.89 million 60-kg bags of green coffee in January, down 8% from the same month a year ago, exporters association Cecafe said on Tuesday in a monthly report. Arabica coffee exports fell 9.3% to 2.65 million bags, while robusta coffee shipments increased by 7.9% to 241,534 bags, the association said, without giving a reason for the overall reduction of shipments.

 
Fob 10 - Vietnam to impose 34% anti-dumping tax on sugar imports from Thailand
Vietnam said on Tuesday it plans to impose anti-dumping duties on raw sugar that originates in Thailand, claiming soaring imports are undermining its domestic sugar industry. The Vietnamese industry and trade ministry said a 33.88% levy would apply on Thai sugar, but a timeframe for when it will come into force has yet to be decided.

Feb 09 - Daily Cocoa Futures Market Report

Price hedge selling put pressure on the market from the start. The May 21 forward lost a good 20 points and finally found support at Friday's lows (GBP 1650) and closed GBP -12 at GBP 1657 in the evening. This means that it has now been three weeks since this level was broken to the south and we continue to move in the corridor of the last few weeks between GBP 1680 and around GBP 1640. The front spread is steadily widening around 4 weeks before the Mar 21 contract expires and is trading at a premium of + 85. Otherwise, the structure remains more or less stable. In Côte d'Ivoire, arrivals last week are slightly below last year. Ghana's CMC reports around 611k mt of cocoa graded and ready for export as of 14 Jan 21 (+2.3% y/y). 

Feb 09 - Brazil's Raizen to buy Louis Dreyfus sugar and ethanol unit Biosev
Brazil's Raizen, the joint venture between Royal Dutch Shell Plc and Cosan SA, has agreed to buy Biosev SA, the sugar and ethanol unit controlled by Louis Dreyfus, in a cash-and-stock deal, the companies said on Monday. Raizen will pay 3.6 billion reais ($670.3 million) to Biosev shareholders, who will also receive 3.5% of Raizen preferred shares, plus 1.49% of redeemable shares, it said in a regulatory filing.   
 

 Feb 09 - Ivory Coast rain could boost cocoa yield, prolonged hot weather a concern
Weak rains last week in most of Ivory Coast's cocoa regions could boost the April-to-September mid-crop, but high temperatures will pose a risk if they continue too long, farmers said on Monday. Ivory Coast, the world's top cocoa producer, is in the dry season, which runs from mid-November to March, when downpours are poor or scarce.

Feb 08 - Funds cut long position in sugar futures, raise in coffee - CFTC
Speculators reduced their net long position in raw sugar futures on ICE in the week to Feb. 2, and raised their bullish bet in arabica coffee, data from the U.S. Commodity Futures Trading Commission showed on Friday. Money managers and hedge funds cut their bullish bet in raw sugar by 6,171 contracts for the period, bringing their net long position in the sweetener to 149,896 contracts.

Feb 08 - Ivory Coast cocoa grind up 8.3% in January, say exporters
Ivory Coast cocoa grinders had processed 199,000 tonnes of beans by the end of January, up from 191,000 tonnes over the same period last season, data from the exporters' association GEPEX showed on Friday. Cocoa grind reached 52,000 tonnes in January compared with 48,000 tonnes during the same period last season. 

Feb 08 - Vietnam Jan coffee exports up 10.2% y/y; rice down 12.4%
Vietnam exported 160,615 tonnes of coffee in January, up 10.2% from a year earlier, government customs data released on Monday showed.  Coffee export revenue in January rose 12.9% from the same month last year to $280.6 million, the Customs Department said in a statement.

Feb 08 - Daily Cocoa Futures Market Report

The March 21 options expired on Friday in New York and the near March / May 21 spread there, were Friday the center of attention. Rolls of the Index Fund, the aforementioned options and arbitrage trading caused the spread, coming from $+88, to diverge to $+135. This also dragged London, although slowed by a firm British pound, with less speed. The May 21 LDN ended the day GBP +6 at GBP 1669, the March / May 21 ran apart to GBP +75. Arrivals in Ivory Coast as of 01/31 stand at 1.337 mt / -3%. Commitment of Traders as of 02.02 show an increase in net long position from 3,704 lots to 75,009 lots net long.

Feb 05 - Weekly Int'l Pepper Market Report, Week 1-5 February 2021 (IPC)

- Market this week showed a mixed response with only Indonesia black pepper was reported with a decrease. In local market, Malabar black pepper was reported stable at an average of USD 4,454 per Mt. Despite Farmers in Lampung were reported keeping hold of their crop, Indonesia black pepper was reported with 2% deficit as compared to the previous week, averaging at USD 2,422 per Mt. Whilst, Indonesia white pepper was reported with an increase of 2% as compared to the previous week, averaging at USD 4,416 per Mt. Malaysia black and white pepper were reported stable, averaging at USD 2,452 per Mt for black pepper and USD 3,919 per Mt for white pepper. Furthermore, Viet Nam black and white pepper were also reported stable, averaging at USD 2,185 per Mt for black pepper and USD 3,047 per Mt for white pepper. Sri Lanka black pepper was reported with an increase of 1% as compared to the previous week and was traded at an average of USD 2,631 per Mt. China white pepper was reported stable and unchanged.
- International market was also reported with a mixed response as India black pepper was reported stable at an average of USD 4,728 per Mt. Indonesia black pepper was reported with 2% deficit when compared to the previous week, averaging at USD 2,933 per Mt. Whilst, Indonesia white pepper was reported with an increase of 2% as compared to the previous week, averaging at USD 5,157 per Mt. Malaysia black and white pepper were reported with an increase of 1% respectively as compared to the previous week, averaging at USD 3,710 per Mt for black pepper and USD 5,070 per Mt for white pepper. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and unchanged. China white pepper was also reported stable and unchanged internationally.

Feb 05 - Export of Pepper Oleoresin from India (IPC)  

- Pepper oleoresin is one of India's added values of pepper product. Pepper oleoresin is a concentrated, resinous extract obtained by conventional solvent extraction or supercritical fluid extraction. As the name implies, pepper oleoresin consists of a blend of the essential oil, resinous matter of the spice and related compounds like the pungent alkaloid piperine. Pepper oleoresin has a relatively full flavor profile characteristic of pepper as compared to pepper oil.
- As the top producers of pepper oleoresin, in 2018 India exported 1,492 Mt of pepper oleoresin. India on average exported a total of 124 Mt per month which peaked in September with 176 Mt. The total revenue of India's export of pepper oleoresin in 2018 was reported to be as high as USD 56.3 Million. Thus, recording an average price of the total pepper oleoresin exported by India at USD 38 per Kg. The highest export price of pepper oleoresin from India in 2018 was recorded in May with USD 47 per Kg whilst the lowest price was recorded in December with USD 31 per Kg.
- Year 2019 saw an increase in term of quantity of pepper oleoresin exported by India. India was reported to have exported a total of 1,510 Mt, recording an increase of 1% when compared with 2018. The average export of pepper oleoresin by India in 2019 was reported to be 126 Mt per month which peaked in March with 182 Mt. Although increasing in terms of quantity, India's revenue from pepper oleoresin export was reported to have declined by 17% to a total of USD 46.7 Million as compared to the previous year. Thus, recording an average price of the total pepper oleoresin exported by India at USD 31 per Kg or a decrease by 19% as compared with 2018. The highest export price of pepper oleoresin from India in 2019 was recorded in February with USD 36 per Kg whilst the lowest price was recorded in September and November with USD 28 per Kg.
- As of November 2020, India was reported to have exported a total of 1,386 Mt pepper oleoresin. Thus, recording a decrease of 1% when compared to the same period in 2019. By the end of November 2020, the total revenue of India's pepper oleoresin export was reported to have reached USD 39.0 Million. Thus, recording a decrease by 10% as compared to the same period in 2019. The average price of the total pepper oleoresin exported by India as of November 2020 was reported at USD 28 per Kg, recording a decrease of 9% as compared to the same period in 2019 with the highest export price of pepper oleoresin was recorded in September and November with USD 30 per Kg whilst the lowest price was recorded in April and October with USD 26 per Kg.
- Pepper oleoresin from India is widely traded in America, European and Asia. As of November 2020, India's top 5 Country of destinations for its pepper oleoresin were reported to be United States of America with 316 Mt (Contributed to 23% of India's total pepper oleoresin export as of November 2020), Germany with 148 Mt (11%), Netherlands with 109 Mt (8%), China with 102 Mt (7%) and France with 68 Mt (5%).

Feb 05 - Daily Cocoa Futures Market Report

With pitiful volume of just over 15k lots and a narrow range of GBP 26, it looked like a slightly firmer performance overall during the day. By the evening, there was no sign of this and the May 21 contract once again closed almost unchanged at GBP 1663 (GBP -3). So, all in all, not a dramatic day. The British Pound certainly made its contribution, which experienced a boost against the Euro and US$ in light of positive news from the Bank of England to leave the interest rate unchanged with planned bond purchases. Currently, we see EURGBP 0.8745, the weakest euro exchange rate since mid-December. In the IVC, the CCC continues to sell midcrop and new main crop. We hear that some major market players are in close negotiations for highly favorable differentials. A likely short window of opportunity that the industry is currently using to expand coverage at levels that continue to be attractive.

Feb 05 - Thailand's sugar crop to rebound in 2021/22 – report
Thailand's sugar cane production is expected to rebound in the 2021/22 season as higher prices paid by mills to cane growers are seen boosting planting intentions, sugar trader and supply chain services provider Czarnikow said in a report on Thursday. Czarnikow projects sugar cane production to increase by 30 million tonnes in 2021/22 (Oct-Sept) to 100 million tonnes, which will consequently boost sugar production in the country, one of the largest sugar exporters.

Feb 04 - Daily Cocoa Futures Market Report

Yesterday was an exemplary typical picture of the cocoa market, which we see since about mid-December. Any emerging momentum is almost immediately leveled off. After the quite firm movement of the previous day, the market corrected yesterday and the May 21 ended the day at GBP -34 at GBP 1660. A breakout from the current GBP 1630/GBP 1730 range is currently not in sight, but this may not mean that we do not have volatile days ahead. Also yesterday in focus the the March / May 21 spread in New York, fortified on Tuesday to $+107, it ran yesterday to a premium of $+73 together. The rolling of the major index funds should begin tomorrow in NY, and more volatility is in sight. With just over 7 months of price coverage, the industry is currently not in traction and is patiently waiting for its opportunity

Feb 04 - Price agreements for sunflower oil, sugar being fulfilled - Reshetnikov
- Agreements regulating prices for sunflower oil and sugar are being fulfilled, Economic Development Minister Maxim Reshetnikov said during a working meeting with Russian President Vladimir Putin.
"The indicative prices that have been designated are generally being met; the tax service controls this; and the Federal State Statistics Service (Rosstat) confirms it. Our sugar prices have declined from the peak in mid-December, and prices for sunflower oil have now stabilized," Reshetnikov said during the meeting.
As previously reported, prices for sugar and sunflower oil are regulated according to agreements signed between producers and retailers on December 16, 2020. As per the agreements, the wholesale price for sugar must not exceed 36 rubles per kg, 46 rubles/kg retail; and wholesale of 95 rubles per liter for sunflower oil, 110 rubles/liter retail.

 

Feb 03 - Daily Cocoa Futures Market Report

Slowly but steadily, after a few sluggish weeks, some life seems to be returning to the market. With the strongest participation so far this year (33.5k lots volume) despite a further firm British pound, London could slightly increase. Although the market was under pressure for a long time in the afternoon, it gained at the end of the day. The May 21 contract tested resistance at GBP 1700, just above the 100-day moving average, with daily highs. Interestingly, both the CCC and Ghana's CMC showed up in the market with sales of current mid-crop and 2020/21 main crop, reportedly totaling between 20-30k mt to have changed hands. Differentials remain unclear, but unanimous opinion is that they are under pressure. Apparently (unconfirmed) mid-harvest traded at -250 plus LID IVC / level plus LID Ghana; main crop 21/22 -150 plus LID IVC / +40 plus LID Ghana.

Feb 03 - Global coffee supply surplus seen rising sharply - ICO
The global coffee market should see a surplus of 5.26 million 60-kg bags in the 2020/21 season (October-September), above a revised upwards surplus of 4.14 million bags in 2019/20, the International Coffee Organization said in a report on Tuesday. In its first projection for the 2020/21 season, the ICO said production should reach 171.89 million bags, 1.9% higher than in the previous season, while consumption was seen at 166.62 million bags, 1.3 percent higher. 

Feb 03 - India's Oct-Jan sugar output jumps 25% to 17.7 mln tonnes - trade body 
Indian sugar mills produced 17.7 million tonnes of sugar in the first four months of the 2020/21 marketing year which started on Oct. 1, up a quarter from a year earlier as production jumped in western state of Maharashtra, a leading trade body said. The country is the world's second biggest sugar producer and the higher output could weigh on global prices. 

Feb 02 - Daily Cocoa Futures Market Report

Up to the last half hour of yesterday's trading, one could have safely ignored his screen completely. The May 21 consolidated over long stretches and dared only half an hour before the close the breakout to the upside and gained almost GBP 30. May 21 ended yesterday at GBP +9 at GBP 1676, near the highs of GBP 1680. Despite the firm move to the close, it was ultimately an inside day without any new great momentum. Commitment of Traders show a reduction of long position from 2,733 lots to now 71,305 lots net long. Managed Money liquidated 4,800 lots. Change from previous week GBP -51 / US$ -57. If Ivory Coast (theoretically) really sold 150-200k mt for the current crop, it begs the question: 'who' was putting the brakes on hedging pressure? It wasn't the specs....and the industry was also conspicuous by its absence.

Feb 02 - Raw sugar prices seen falling, global surpluses expected - poll
Raw sugar futures look set to end this year more than 8% below current levels with a marginal global surplus this season seen widening slightly in 2021/22, a Reuters poll of 11 traders and analysts showed on Monday. Prices were seen ending 2021 at 14.5 cents per lb, down 8.4% from Friday's close and 6.4% below levels at the end of 2020, according to the median forecast. 

 Feb 02 - Honduran coffee exports fall 18% in January as pandemic hits demand
Honduran coffee exports fell 18% in January, data from the national coffee institute IHCAFE showed on Monday, as pandemic-related closures dented global demand for the commodity. The Central American nation exported 590,481 60-kg bags in January, compared with 718,886 in the same month last year, according to preliminary data from IHCAFE.

Feb 02 - Ivory Coast farmers are hopeful for cocoa mid-crop
Little to no rain fell last week in most of Ivory Coast's cocoa regions, as farmers on Monday welcomed the good development of the April-to-September mid-crop. Ivory Coast, the world’s top cocoa producer, is in the dry season, which runs from mid-November to March, when rainfall is limited.
 

Feb 01 - ICO: World coffee exports amounted to 10.97 million bags in December 2020, 1.5% higher compared with 10.81 million in December 2019. Exports in the first 3 months of coffee year 2020/21 (Oct/20 to Dec/20) have increased by 6.1% to 31.59 million bags compared to 29.78 million bags in the same period in 2019/20.

Feb 01 - ECOM: In their latest report, ECOM, has pegged global production for the 2021-2022 crop year at 164.5 million bags, down 4.6% from the 172.5 million bags of coffee the firm estimates will be produced in the 2020-2021 crop year. Global demand will increase 2 million bags year on year, to 171 million bags in 2021-2022, implying a supply deficit of 6.5 million bags for the upcoming crop year.

Feb 01 - Honduras: Coffee Exporters Association of Honduras (ADECAFEH) has revised lower their estimate for total coffee exports for the 2020-2021 coffee crop year to total 5.6 million bags, down 6.7% from their previous estimate of 6 million bags- this represents a 3.7% increase from the 5.4 million bags exported in the previous coffee year.
 
Feb 01 - Costa Rica: The country exported 49,327 60-kg bags of coffee in January, down 37.4% from the 78,804 bags exported in the same month last year. This brought cumulative exports for the first four months of the current October 2020 to September 2021 coffee year to 138,001 bags, down 1.4% from the 139,970 bags exported in the same period of the previous coffee year.

Feb 01 - Uganda: Coffee exports in December 2020 amounted to 422,922 60-kilo bags, up 28.06% from the same month last year. This was comprised of 375,209 bags of Robusta and 47,713 bags of Arabica. Robusta increased by 33.72% and Arabica exports decreased by 3.89% year on year.

Feb 01 - ICE Certified Stocks: Arabica stocks were reported at 1.62 million bags as of February 1, down 25.7% from the same time last year. Robusta stocks were down 1.2% year on year at 2.37 million bags.

Feb 01 - Daily Cocoa Futures Market Report

The end of the month drew the picture of the past weeks. Support after opening, encountering pressure from hedge selling and fund liquidations, almost unchanged close (May 21 GBP 1667; +6). It was the end of a month largely dominated by origin news from Côte d'Ivoire. In addition to aggressive offers from local exporters who still need to get rid of unsold export contracts, the CCC also showed up in the market there Friday with more package deals for current crop. From both sides at extremely low differentials of around GBP -250 plus LID basis CIF. In other words, a differential of GBP +50 incl. LID, a perfectly common level in the pre-LID era. This development, resulting from the pressure of having to sell large volumes of current crop, is fuel for those who have always doubted LID. It is clear that the CMC's Ghanaian neighbors are not likely to be pleased in view of these price levels. The CCC had already been summoned to Ghana around the New Year and reprimanded for these special offers, whereupon the CCC backed down again for the time being.