Softs News

Aug 16 - Int'l Weekly Pepper Report, 12 - 16 August 2019 (IPC)

- Market this week showed mixed response with a rather negative outlook. In local market, Malabar black pepper was traded with 2% deficit as compared to the previous week with an average of USD 4,679 per Mt. Indonesia black pepper was reported steady with an average of USD 1,894 per Mt. Following the arrival of new crop, Indonesia white pepper was reported with a slight 1% deficit as opposed to the previous week averaging at USD 3,366 per Mt. In local currency, Muntok white pepper was traded with an average of IDR 48,000 per Kg Malaysian black and white pepper were reported stable with an average of USD 2,340 per Mt for black pepper and USD 3,860 per Mt for white pepper. Viet Nam black and white pepper were also reported stable and unchanged. Following the end of harverst season both in Sri Lanka and China, Sri Lanka black pepper and China white pepper were traded with the same 2% deficit as compared with the previous week with an average of USD 2,493 per Mt and USD 4,790 per Mt respectively.
- In international market, FOB price of India black pepper was reported with the same 2% deficit as compared to the previous week at an average of USD 4,960 per Mt. Indonesia black pepper was reported stable and unchanged. Whilst Indonesia white pepper was traded with 1% deficit as compared to the previous week with an average of USD 3,982 per Mt. Malaysia black and white pepper continued stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with an increase by 1% as compared to the previous week averaging at USD 2,265 per Mt, USD 2,330 per Mt and USD 3,415 per Mt respectively. China white pepper was traded internationally with 2% deficit as opposed to the previous week at an average of USD 4,990 per Mt. The decrease in price of China white pepper aside from the effect of harvest season, it was also contributed by the slight weakening of Chinese Yuan against US Dollar. 

Aug 16 - Daily Cocoa Futures Market Report

The opening was much firmer than expected, but as in the days before, further Longs liquidation became apparent. Another downtrend yesterday, which brought new Lows (GBP 1719 Dec 19). The Sep19/Dec19 spread drifted apart to - GBP77, also a new low for the contract. With retail sales in the UK above expectations, the British Pound was able to recover slightly, partially offsetting the weaker quotes, especially for the EUR's fixed-price buyers. Dec 19 closed at GBP1721 (GBP-9). We will see what today brings, a further reduction in the long position can be expected.

Aug 15 - Daily Cocoa Futures Market Report

The massive downward trend continued yesterday. While it looked like consolidation at the beginning, further sales of the Specs / Funds put further pressure on the quotations. Dec 19 broke through the long-term 200-day moving average at GBP 1735, closing at GBP -12 at GBP 1730. The industry also followed the market yesterday until the end of 2020, but no wonder the losses of over GBP 130 within a good week and a still attractive currency provide interesting fixed prices. New York broke through the $ 2200  mark in the second month yesterday, closing at $ 2204 / -4. We are looking forward to the next COT figures, as already described yesterday, a reduction of the speculative position between 10-15,000 lots can be expected

Aug 15 - Latam cocoa growers, inspired by West Africa, eye price floor 
Latin American cocoa could soon demand a minimum price of $3,200 per tonne if a proposal from Peru finds support at a gathering of regional producers on Thursday, one month after their counterparts in West Africa announced a shift in how they price beans. Cocoa-producing countries have been searching for ways to protect farmers from market swings after global overproduction sent prices crashing in 2016-17, and as ongoing oversupply has meant a slow recovery in prices.

Aug 15 - Cameroon expects to double cocoa processing this season to 120,000 T 
Cocoa processing output in Cameroon, Africa's third biggest cocoa grower, is expected to double this season to 120,000 tonnes from 58,000 tonnes last season, the trade minister said while opening the new season. Trade Minister Luc Atangana was speaking at the opening of Cameroon's 2019/20 cocoa season on Tuesday, in comments published in a statement on Wednesday.

 
Aug 15 - Dreyfus sugar unit Biosev quarterly loss narrows on currency, cost cuts 
Biosev SA, the Brazilian sugar and ethanol maker controlled by Louis Dreyfus, posted a quarterly loss of 169 million reais ($41.72 million) on Wednesday, 66.7% smaller than a year ago, on positive currency effects as well as cost cuts, the company said. Biosev said it crushed 10.88 million tonnes of sugarcane in the quarter, 3.4% less than in the same period last year, mostly due to a late start to the harvest. But agricultural yields were up 3.8 percent, to 88.4 tonnes of cane per hectare, which signals a possible larger final crush for the current season.

Aug 14 - Daily Cocoa Futures Market Report

The "longs leave the sinking ship" so it seems since about 10 days...a correction is overdue in the "oversold" markets London and New York. It is a similar scenario as in July, but this time in the opposite direction. The industry also accompanied the market yesterday with price hedging purchases. The persistent weakness of the English currency against the euro is making very interesting prices possible. Yesterday's procedure: opening unchanged, as a result there were massive sales by speculators first in London, followed in the afternoon by sales in New York. Yesterday, after the close of trading, the "future positions" of the market participants had to be named for the "Commitment of Traders" to be expected next weekend. A further reduction of the net long is expected. Closing yesterday GBP 1742/-30.

 Aug 14 - Ivory Coast's main cocoa crop harvest could start early Sept - farmers 
The harvest for Ivory Coast's main cocoa crop could start at the beginning of September, weeks earlier than last year because of heavy rain over the past month, farmers told Reuters on Tuesday. Ivory Coast's main crop runs officially from October to March, though that can vary depending on the weather.

 
Aug 14 - Brazil's Sao Martinho avoids sugar hedge, sees mid-term price recovery 
Brazilian sugar and ethanol maker Sao Martinho SA  is refraining from hedging sugar for the next season, believing that prices have reached a floor and are likely to recover in the mid-term, Chief Financial Officer Felipe Vicchiato said on Tuesday. "I don't think sugar prices could fall further, that is why we are not doing much hedge for next season," Vicchiato told analysts in an earnings call.

Aug 13 - Daily Cocoa Futures Market Report

After yesterday's in-depth analysis. London opened with a plus of GBP 12 as expected. The firm morning was still marked by the massive reduction in the net long position. In the afternoon there was some selling pressure from New York which led to a minus of GBP 7 / GBP 1772 at the end of the day and a plus of US$ 3 / US$ 2245 in New York.

Aug 13 - USDA raises domestic sugar stocks outlook 
The U.S. Department of Agriculture (USDA) on Monday raised its outlook for domestic sugar stocks as it slightly increased its production outlook for the 2019/20 crop year. The USDA put the closely watched stocks-to-use ratio at 13.7 for 2019/2020 compared to its forecast of 13.5 last month.The department in its monthly report increased its production outlook for the year to 9.308 million short tons (8.44 million tonnes) from the 9.260 million tons expected last month on higher cane output from Florida.

Aug 12 - Daily Cocoa Futures Market Report

It was a quiet end to the week in both markets. Dec 19 traded in a range of GBP 12 around the 100 days moving average at GBP 1782. Closing GBP +2 at GBP 1779. New York recorded the 14th consecutive loss, closing $-12 at $ 2242. Commitment of Traders as of 06.08.19 show a significant reduction in the net long position from 17,169 lots to 101,392 net long. If we split up the markets, the picture is clearer. While LDN only reduced just under 2,000 lots, the NY specs reduced their position by more than 15,000 lots, and the Managed Money Specs In NY, which built up nearly 4,000 lots of fresh shorts gross, are also interesting. Understandably, NY lost $124 / LDN GBP -82 in the last reporting period. Arrivals in Côte d'Ivoire were 2,123 million mt vs. 1.937 million mt from 17/18 (+9.6%) as at 31.07.19.

Aug 09 - Intl Weekly Pepper Report, 5-9 August 2019 ( IPC)
- Market this week showed a rather negative outlook. In local market, Malabar black pepper was traded with 3% deficit as compared with previous week with an average of USD 4,762 per Mt. Indonesia Black and white pepper were reported with the same 1% deficit as opposed to the previous week with an average of USD 1,894 per Mt for black pepper and USD 3,402 per Mt for white pepper. As Indonesian black and white pepper in local currency were traded unchanged as opposed to the previous, the decrease in Indonesia pepper prices were highly contributed to the weakening of Indonesian Rupiah against US Dollar by 181 points. Malaysia black and white pepper were also reported to be traded with 1% deficit locally as compared to the previous week, averaging at USD 2,341 per Mt for black pepper and USD 3,862 per Mt for white pepper. Viet Nam black and white pepper were reported stable and unchanged. Sri Lanka black pepper was reported stable averaging at USD 2,544 per Mt. Whilst China white peppper was traded at an average of USD 4,872 per Mt.
- In international market, FOB price of India black pepper was reported with the same 3% deficit as compared to the previous week at an average of USD 5,045 per Mt. Indonesia black and white pepper were reported with a 1% deficit as opposed to the previous week with an average of USD 2,328 per Mt for black pepper and USD 4,022 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 to be traded with a 1% deficit as compared to the previous week averaging at USD 2,245 per Mt, USD 2,310 per Mt and USD 3,395 per Mt respectively. China white pepper was traded internationally at an average of USD 5,072 per Mt.
- US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt. 

Aug 09 - Daily Cocoa Futures Market Report

The continuing downtrend continued, albeit at a slightly weaker level. Dec 19 looked for and found good support at the 100 day moving average at GBP 1780, closing at GBP -8 at GBP 1777. It seems that the specs will continue to give up positions and the industry is taking them up with thanks. Volume was on the high side with a combined turnover of over 120,000 lots. Apart from the technical correction and as mentioned in the previous reports, there are currently few reasons why the market should not continue to drop further. Next support now at GBP 1733 / 50 days Moving Average. Volume of the exchange in July: LDN 654,486 lots (+10.6%); NY 855,795 lots (-3.2%). The harvest was thus traded approx. 3.3 times in July. We wish you a nice weekend

Aug 09 - Brazil's 2019 coffee harvest nearing end, says analyst  
Brazilian coffee farmers have harvested 93% of expected production in 2019, as field work continues at a quicker pace than seen in the past, agribusiness consultancy Safras & Mercado said in a report on Thursday. Harvest at this time last year had reached 88% of the fields while the five-year average for the period is 84%, Safras said, adding that most farms in the world's largest producer have already finished collecting their beans.

 
 
Aug 09 - Some 430 acres of Colombian bananas infected with fungus 
A 175-hectare (430-acre) section of Colombia's banana crop has been contaminated with the fusarium R4T fungus, the national agricultural institute said on Thursday, as it called for a countrywide effort to increase sanitary controls to contain the malady. The fungus, popularly known as Panama disease, can remain in the soil for up to 30 years by attacking the roots of banana plants, which are Colombia's third-largest agriculture export after coffee and flowers.

Aug 08 - Daily Cocoa Futures Market Report

Too much, too fast? It seems that the advocates of this theory have to wait even longer for the technical counter-movement. Dec 19 broke through the GBP 1800 barrier and, despite good industrial activity, only found good technical support towards GBP 1780 / 100 days moving average. Closing price Dec 19 GBP -21 at GBP 1785. Next big fundamental buying interest we see starting at GBP 1740. New York recorded the 12 day in a row with bigger losses, closing price Dec 19 $-37 at $ 2266. The question is when will the market turn? Technically (markets clearly oversold) a correction should set in, only the specs will continue to sell. In line with the current market movement, the President of Côte d'Ivoire announced yesterday that the 2020/21 crop would not be marketed below US$2600.

Aug 08 - Brazilian mills slash sugar hedging to lowest level in eight years
Brazilian sugar producers have hedged only 58% of their expected exports in the current season, the lowest level in eight years, as low prices reduce the use of futures contracts by mills as a way to guarantee future revenue. According to a report released on Wednesday by Brazil-based Archer Consulting, Brazilian sugar companies have sold forward in New York's ICE the equivalent of around 11.2 million tonnes of raw sugar.

Aug 07 - Daily Cocoa Futures Market Report

Yesterday also showed that the market will continue to be made in New York. The further roll of the Hedgefunds provided yesterday in New York for the eleventh loss in a row. London's only "anchor" to fall more clearly seems to be the weak British Pound. Dec 19 tested GBP 1803 as the low, the support mentioned yesterday at GBP 1800 and ended the day at GBP -25 at GBP 1806. If the 1800 mark were breached, the market would have air to GBP 1780 / 100 days moving average. In New York today the 10 & 100 day Moving Average cross, this signal led in the past rather to a firmer course. Ghana yesterday announced to raise the farmer price for the 19/20 campaign from 7600 to 8000 Cedi, equivalent to about 67% of the current futures price and close to the target of the promised 70% for the next crop.

Aug 07 - Sugar's share of Brazil cane crop seen at all-time low - FCStone 
Brazilian mills are expected to allocate only 34.7% of the current cane crop to sugar production, an all-time low, as they focus the rest of the cane in the main center-south region on ethanol, broker and analyst INTL FCStone said on Tuesday. The production mix dedicated to sugar was forecast 0.5 percentage point below the previous record low seen last season and 2.4 percentage points below the May forecast, INTL FCStone said, as mills favor ethanol due to better financial returns.

 Aug 07 -
Ghana to raise cocoa farmers’ prices by 5.2% - sources 

Ghana will raise cocoa farmgate prices by 5.2% for the 2019/20 season, the first increase in four years, following strong sales of export contracts to chocolate makers and cocoa houses, industry sources told Reuters. The farmgate price will rise to 8,000 Ghanaian cedi ($1,523.81) per tonne in the season starting in October, from 7,600 cedi per tonne last season, the sources at industry body Cocobod and its marketing arm Cocoa Marketing Company (CMC) said on Tuesday.

Aug 06 - Daily Cocoa Futures Market Report

A mix of various causes (hedge pressure from the origin, speculative selling, etc.) yesterday caused a breakout from the bandwidth ultimately seen. Dec 19 broke through the 50 days moving average at GBP 1856, traded on Lows from GBP 1828 around, much weaker, to end the day at GBP -31 at GBP 1831. Next support we see now at GBP 1800. New York recorded the 10th day in a row with significant losses and lost over $250 in 10 days now, certainly triggered by larger rolls of hedge funds before the First Notice Day next week. The industry used the weak market and the weak GBP to hedge the market until 2020.

Aug 06 - Ivory Coast's first lady meets U.S. senators over call for cocoa embargo 
Ivory Coast's first lady Dominique Ouattara met a delegation of U.S. senators on Monday to appeal their call for an embargo on Ivorian cocoa over the alleged use of child labour. In July, Senators Sherrod Brown of Ohio and Ron Wyden of Oregon urged the U.S. Customs and Border Protection (CBP) agency to block the import of cocoa made with forced labour, citing a Washington Post investigation that indicated the sector in Ivory Coast still relied on indentured child labour. 

 
Aug 06 - Brazil yet to decide on tariff-free quota for ethanol 
The Brazilian government has yet to decide whether to renew a tariff-free quota for imports of ethanol virtually all supplied by the United States, Agriculture Minister Tereza Cristina Dias said on Monday, as the end of the quota approaches. Brazil currently allows for 600 million liters per year of ethanol to enter the country with no tariff, but the provision expires at the end of this month. If it is not renewed, future imports will be subject to a 20% tax.

Aug 05 - Daily Cocoa Futures Market Report

At least in London it was a restrained end of the week in cocoa. Dec 19 was trading in a range of GBP 1859/1885, closing GBP -4 at GBP 1862. New York has been much more active in the last few weeks, certainly due to currency movements, NY lost more than $ 200 in the last 9 trading days, London "only" GBP 42. This led to an approach of the arbitrage of over GBP 40 and traded Friday at GBP -72 / Dec 19.
Commitments of Traders as at 30.07.19 show an expansion of the speculative long position in LDN of 2,000 lots (market change in the last reporting period GBP -6), while in New York over 4,500 lots were liquidated into specs and 1,100 lots of new shorts came into the market (market change in the last reporting period $ -92!).

Aug 05 - Speculators hike arabica coffee net short position to 5-week high - CFTC 
Speculators hiked their net short position in arabica coffee on ICE Futures U.S. in the week to July 30 to its largest in five weeks, U.S. government data showed on Friday. Speculators reduced their bearish stance on raw sugar, reduced their net long position in cocoa, and cut their net short position on cotton futures and options, the data from the U.S. Commodity Futures Trading Commission showed.

Aug 05 - Honduran coffee exports drop slightly in July 
Honduran coffee exports fell 0.5% in July compared with the same month last year, the Honduran Coffee Institute (IHCAFE) reported on Friday. Honduran exporters shipped a total of 684,453 60-kg bags compared to 688,193 bags in the same month of 2018, according to IHCAFE. Honduras only produces arabica coffee.

Aug 02 - Daily Cocoa Futures Market Report

The volume in the cocoa market increased noticeably yesterday after lowering of US federal interest rates. Already in the morning the losses of the previous day were compensated and new highs (GBP1892 Dec19) were quoted. All this with the British Pound remaining weak, against the US$ as it has not been since January 2017. The expected weak start in NY finally also put London under pressure, the Dec19 closed almost unchanged at GBP 1866 (-GBP2). In Côte d'Ivoire, President Ouattara is paving the way for the election in 2020: he is planning a constitutional amendment according to which a president (as before) may only be a maximum of 75 years old. The former presidents Bédié & Gbagbo would be out of the running. Trump once again has time for renewed threats of punitive tariffs from Chinese imports, which caused unrest in the $ region yesterday. We'll see what the cocoa market makes of it today.

Aug 02 - Int'l Weekly Pepper Market Report, 29 July - 2 August 2019 (IPC)
- Market this week showed mixed response. In local market, Malabar black pepper was reported with an increase by 1% as compare to the previous week averaging at USD 4,892 per Mt. Indonesia black and white pepper were reported with a 1% deficit as opposed to the previous week with an average of USD 1,918 per Mt for black pepper and USD 3,446 per Mt for white pepper. As Indonesian black and white pepper in local currency were traded unchanged as opposed to the previous, the decrease in Indonesia pepper was highly contributed to the weakening of Indonesian Rupiah against US Dollar. Malaysian black pepper was reported to be traded with 1% deficit as compared to the previous week, averaging at USD 2,369 per Mt. Whilst, Malaysian white pepper was reported stable averaging at USD 3,909 per Mt. Viet Nam black pepper was reported to be traded with 1% deficit as opposed to the previous week, averaging at USD 1,876 per Mt while Viet Nam white pepper was reported unchanged. Sri Lanka black pepper was reported with a slight increase of 1% as compared to the previous week, averaging at USD 2,538 per Mt.
- In international market, FOB price of India black pepper was reported with an increase by 1% as compared to the previous week averaging at USD 5,182 per Mt. Indonesia black and white pepper were reported with a deficit of 1% as opposed to the previous week with an average of USD 2,358 per Mt for black pepper and USD 4,074 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 stable averaging at USD 2,265 per Mt, USD 2,330 per Mt and USD 3,415 per Mt respectively.
- US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

Aug 01 - Daily Cocoa Futures Market Report

Brief review: on 8.7.19 December 19 was quoted at a high of GBP 1949. Yesterday's closing price of GBP 1869 was a correction of GBP 80 / 4.1%. New York fell in the same period from US$ 2606 to US$ 2394. Correction in NY US$ 212/ 8.1%. It seems that the speculators in New York are a little more selling than their colleagues in London at the moment. One can therefore be curious as to how the market (the speculators) will react to increased price hedging purchases by the industry. The uncertainty about the effects of the "price agreement" between Ghana and Côte d'Ivoire continues. From today's perspective, however, one thing seems to be becoming apparent: the differential for raw cocoa remains high and with it the ratio for cocoa butter and cocoa mass.

Jul 31 - Daily Cocoa Futures Market Report

Again it seems that the market yesterday, in the meantime, has found its bottom. Dec 19 was trading, with little volume and an equally uninspiring range, mainly at levels just below GBP 1900. Closing GBP +8 at GBP 1888. Yesterday too, the only "noise" was that of the new PM on the island, which led to a further collapse of the local currency vs. the EUR and US$. The industry temporarily exploited this weakness and accompanied the market with price hedges until 2020. Little news from a fundamental point of view, the focus is now on weather reports from WA. More rain or less rain ? Opinions cannot be further apart. First estimates of the "specialists" speak for 19/20 a deficit of over 100k up to a surplus of over 100k mt...Silly Season.

Jul 31 - Canal Sugar to build grains terminal in Egypt's Damietta
Canal Sugar, owned by Dubai-based Al Khaleej Sugar Refinery, plans to build a pier and grains terminal in Egypt's port city of Damietta with $200 million in investments, its CEO said on Tuesday. The new terminal will have discharge capacity of 3,000 tonnes of grains per hour, CEO Islam Salem told a news conference. The company expects to finalise a contract with the government for the pier and terminal by the end of the year, Salem said in response to a Reuters question.

Jul 30 - Daily Cocoa Futures Market Report

It was now the 5 days in a row on the London cocoa market with lower lows and highs (mini-down trend?). However, with less than 11,000 lots and a range of GBP 17 / Sep 19, we also recorded the quietest trading day of the year. Sep 19 ended the day slightly firmer at GBP +12 at GBP 1880. However, all eyes were on the currency yesterday, driven by (once again) discussions from the new PM about a possible "hard brexit", the US$ recorded its strongest performance since Q1 2017, and the EUR also traded at a multi-year high against the GBP.

Jul 30 - Brazil high quality coffee suffers, burning some traders
Brazil is producing less top quality coffee this year despite a bumper crop overall because of unusual pre-harvest weather, burning some traders counting on the beans, said industry sources. The market for Brazilian fine cup arabicas is tighter than normal, causing a premium for the origin over New York futures, which is particularly rare this time of the year, said traders, who requested anonymity to discuss the market-sensitive matter.

 
 Jul 30 -
Australia’s Mackay Sugar accepts Nordzucker takeover

Farmers who own shares in Australia's Mackay Sugar have voted to accept a takeover offer from Germany's Nordzucker, helping secure the company's future against a backdrop of depressed world sugar prices. The offer was approved by a 75% majority of Mackay's shareholders, they said in a statement on Monday.

 
Jul 30 - Ivory Coast rains to boost cocoa main crop - farmers
Above-average rainfall last week in most of Ivory Coast's cocoa growing regions will boost the October-to-March main crop, but more sun is still needed, farmers said on Monday. The mid-crop, which lasts from April to September in the world's top cocoa producer, is coming to an end as few beans were leaving farms and producers focus on the main crop.

Jul 29 - Daily Cocoa Futures Market Report

Firm start, weak end. The attempt to drive the prices north failed. Selling pressure from speculators in New York brought the New York market a minus of 2% last week, while London remained unchanged! On the lows of the day, price hedges were mainly bought by industry in New York. Closing price London Dec19 GBP 1868/ minus GBP 12. The "uptrend channel, (see chart) was breached, how sustainable this will be the coming days will show. The speculators increased their net long position by 6,682 lots to 122,665 lots in the week to 23.7.19.

Jul 29 - Brazil's center-south cane crop seen slightly smaller than previous season
Brazil's center-south 2019/20 sugarcane crop is forecast in a range between 559 and 570 million tonnes, compared with 573 million tonnes processed by mills in the previous season, agricultural research body Pecege said in a report on Friday. Pecege said average agricultural yields in center-south are expected in a range between 74.2 and 75.6 tonnes per hectare, versus 74.3 t/ha last season.

 
Jul 26 - Weekly Int'l Pepper Report, 22-26 July 2019
(IPC)
- Market this week showed a rather negative outlook. In local market, Malabar black pepper was reported stable with an average of USD 4,866 per Mt. As Lampung is currently undergoing harvest period, Indonesia black pepper was reported with a 4% deficit as opposed to the previous week with an average of USD 1,930 per Mt. Whilst, Indonesia white pepper reported stable averaging at USD 3,468 per Mt. Indonesian black and white pepper in local currency were traded with an average of IDR 27,000 per Kg and IDR 48,500 per Kg respectively. Malaysian black pepper was reported to be traded with 2% deficit as compared to the previous week. Whilst, Malaysian white pepper was reported stable averaging at USD 3,926 per Mt. Viet Nam black pepper was reported to be traded with 1% deficit as opposed to the previous week, averaging at USD 1,901 per Mt while Viet Nam white pepper was reported unchanged. Sri Lanka black pepper continued to be traded negatively as the harvest period progressed. Recording a 3% deficit as compared to the previous week at an average of USD 2,524 per Mt. China white pepper was reported unchanged averaging at USD 4,688 per Mt.
- In international market, FOB price of India black pepper was reported stable at an average of USD 5,155 per Mt. Indonesia black pepper was reported with a deficit of 4% as opposed to the previous week with an average of USD 2,373 per Mt. Whilst, Indonesia white pepper was reported unchanged averaging at USD 4,099 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 to be traded negatively with 1% deficit as compared to the previous week averaging at USD 2,273 per Mt, USD 2,338 per Mt and USD 3,423 per Mt respectively. China white pepper was reported stable at an average of USD 4,888 per Mt in the international market.
- US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

Jul 26 - Daily Cocoa Futures Market Report

It seems as if the heat wave in Europe has also taken full control of the cocoa market. It was a tired / arduous meeting yesterday, the meager 500 lots net sales in London at noon speak volumes. Dec 19 sometimes traded at prices of GBP 1865, ended the day almost unchanged at GBP -3 at GBP 1880. A Reuters survey of 10 analysts / traders etc. revealed a slight deficit expectation for the coming campaign of around 80,000mt (still a balanced year), as well as a year-end price / 2 month of GBP 1882. That was a whole 2 points above yesterday's closing price. Means we are now moving sideways until Christmas, we think / hope not ... We wish you a nice weekend.

Jul 26 - NY cocoa seen edging up as market flips to deficit - poll
New York cocoa prices are forecast to end the year marginally above current levels as the market looks set to flip into deficit in the 2019/20 season, a Reuters poll of 10 analysts and traders showed on Thursday. ICE New York cocoa was expected to end the year at $2,515 a tonne, up 2% from Wednesday's close and 4% versus the start of the year, according to the median forecast of responses. Prices ended last year up 28%.

Jul 24 - Daily Cocoa Futures Market Report

Consolidation around the GBP 1900 level was also announced yesterday. With very low sales again, prices in London moved within a range of GBP 1907/1888. The closing price was GBP 1894 = minus GBP 10. The New York market showed its weak side yesterday and fell by 1.67%, while London only lost 0.53%. The industry, in contrast to last week's activities, also held back yesterday with price hedging purchases as far as possible.

Jul 24 - Indonesia's rubber production to drop 15 pct in 2019 due to disease - ministry official
Indonesia's natural rubber output is expected to drop 15 percent in 2019 compared to 2018's production of 3.76 million tonnes due to a fungal disease, a senior agriculture ministry official said on Wednesday. "The (disease causing) fungus has attacked around 381,900 hectares (of plantations) and is predicted to spread further," said Kasdi Subagyono, the ministry's plantation director general. 

 Jul 24 - Brazil sugar lineup plunges as mills cut export business 
Brazil's sugar line-up, or the amount of the sweetener to be loaded at local ports, plunged in July to the lowest in at least five years, as mills refrain from sugar export business amid declining global prices. According to shipping agency Williams, only 745,000 tonnes of sugar would be loaded to ships at Brazilian ports around July, 28% less than in the same period last year, when local production had already been reduced.

Jul 23 - Daily Cocoa Futures Market Report

After days of consolidation, at current levels just below GBP 1900, yesterday saw movement in the markets. LDN was pulled up from NY like a dog on a leash. Not surprisingly, we are at the lower end of the long term up channel (see chart). The Sep 19 traded within a GBP 1874/1910 range, ending the day at GBP 1904 at GBP +29, just above the psychological barrier of GBP 1900. The arbitrage extended to a GBP -137 discount yesterday. Arrivals in Côte d'Ivoire on 21 July were 2.11 million mt vs. 1.928 million mt from the previous year (+9.5%)

Jul 23 - Bunge and BP team up in Brazil bioenergy venture, create No. 3 sugarcane processor 
U.S. commodities trader Bunge Ltd and British energy company BP Plc said on Monday they will merge their Brazilian sugar and ethanol operations to create the world's third-largest sugarcane processor. The joint venture is the largest deal in Brazil's bioenergy sector since Royal Dutch Shell joined forces with Cosan to form industry leader Raízen in 2011.

 
 Jul 23 -
More rain and sun needed ahead of Ivory Coast main cocoa crop, say farmers 

Rains were below average last week in most of Ivory Coast’s cocoa growing regions and more sun was needed for the main October-to-March main crop to develop well, farmers said on Monday. As the April-to-September mid-crop comes to an end in the world’s top cocoa producer, planters said pods for the Ivory Coast's next harvest were developing well, thanks to good soil moisture content.

Jul 22 - Daily Cocoa Futures Market Report

After the good North American grinding figures (plus 3.71%) the Asian milling figures show a clear plus of 16.28%! The market has taken note of both figures without any major activities. Also on Friday London moved in a very narrow range of only GBP 17 in Dec. 19. With very small turnovers Dec. 19 closed with a plus of GBP 7 = GBP 1875. The "Commitment of Traders Report" from 9.7. - 16.7.19 shows a clear reduction of 18,398 lots in the net long position to a total of 115,983 lots. A reduction of this size was to be expected after the market reached new highs on 8.7. + 9.7. and profit-taking began.

Jul 22 - Speculators hike net short position in raw sugar - CFTC
Speculators sharply increased their net short position in raw sugar on ICE Futures U.S. in the week to July 16 to a five-week high, U.S. government data showed on Friday. Speculators cut their net long position in cocoa, increased their bearish stance on arabica coffee, and trimmed their net short position on cotton futures and options, the data from the U.S. Commodity Futures Trading Commission showed.

Jul 19 - Weekly Int'l Pepper Market Report, 15-19 July 2019 (IPC)
- Market this week showed mixed response. In local market, Malabar black pepper was reported with a slight decrease by 1% as compared to the previous week with an average of USD 4,847 per Mt. As Lampung is currently undergoing harvest period, Indonesia black pepper was reported with a 2% deficit as opposed to the previous week with an average of USD 2,008 per Mt. Whilst, Indonesia white pepper reported an increase by 1% as compare to the previous week averaging at USD 3,478 per Mt. Indonesian black and white pepper in local currency were traded with an average of IDR 28,000 per Kg and IDR 48,500 per Kg respectively. Malaysian black pepper reported to be traded with 2% deficit as compared to the previous week. Whilst, Malaysian white pepper was reported with a slight increase of 1% as compare to the previous week, averaging at USD 2,437 per Mt for black pepper and USD 3,933 per Mt for white pepper. Viet Nam black pepper was reported to be traded with 1% deficit as opposed to the previous week, averaging at USD 1,919 per Mt while Viet Nam white pepper was reported unchanged, averaging at USD 2,847 per Mt. Sri Lanka black pepper continued to be traded negatively as the harvest period progressed. Recording a 1% deficit as opposed to the previous week at an average of USD 2,592 per Mt. China white pepper was reported to be traded with 1% deficit as compared to the previous week averaging at USD 4,680 per Mt. The slightly drop in China was contributed to the harvest period currently in full swing.
- In international market, FOB price of India black pepper was reported with a 1% deficit as compared to the previous week at an average of USD 5,138 per Mt. Indonesia black pepper was also reported with the same decrease by 2% as opposed to the previous week with an average of USD 2,461 per Mt. Whilst, Indonesian white pepper recorded a slight increase by 1% as compared to the previous week averaging at USD 4,111 per Mt. Malaysia black and white pepper were reported stable and unchanged. Furthermore, Viet Nam black pepper 500 g/l and 550 g/l were reported to be traded negatively with 1% deficit as compared to the previous week averaging at USD 2,295 per Mt and USD 2, 360 per Mt respectively. Whilst, Viet Nam white pepper was reported stable, averaging at USD 3,445 per Mt. China white pepper was reported with an even higher deficit of 4% as opposed to the previous week at an average USD 4,880 per Mt in the international market.

Jul 18 - Daily Cocoa Futures Market Report

The bandwidth yesterday, whole GBP 30. Turnover very low. Consolidation seems to be on the cards...The industry has used the weak English currency, in part, to buy price hedges. At the end of the day there was a minus of GBP 3 = GBP 1871. Today the North American grinding figures are expected. All market participants are waiting for the first sales (Ghana and Ivory Coast) from the 2020/21 season and perhaps then a little more "clarity" will come into the market what to expect in the future!

Jul 17 - Daily Cocoa Futures Market Report

Disappointing ECA grinding figures, minus 3.15% in Q2 2019. Expectations were 1-2% plus. The market did not react to these figures. It seems more like the market needs time to breathe after the very nervous last week. The second month, now December 19, ended the day with a plus of GBP 14 = GBP 1835. Technically, the market should find its first support at a level of GBP 1800.

Jul 17 - Prices of cardamom, Queen of Spices, soar as wild weather wipes Indian production
Every year, tens of millions of Hindus flock to the Venkateswara Temple in the southern Indian state of Andhra Pradesh to pay tribute to site's patron deity and pick up some of its famous sweets, the legendary "Tirupati laddu". The traditional delicacy is baked with sugar, flour, ghee, nuts and raisins and studded with cardamom, which has surged in price this year as India's erratic weather ravages production of the pod, known as "the Queen of Spices".

Jul 17 - Ivory Coast, Ghana end suspension of cocoa sales after price agreement - letter
Top cocoa growers Ivory Coast and Ghana agreed on Tuesday to lift the suspension of cocoa sales for the 2020/2021 season, according to an official letter seen by Reuters. The suspension of forward sales was lifted after the two countries agreed to a new pricing mechanism that will boost prices for growers even as it could raise the cost for buyers.

Jul 16 - More rains, sun needed to boost Ivory Coast cocoa crop - farmers
Rains were below average last week in most of Ivory Coast’s cocoa growing regions ahead of the October-to-March main crop, while some areas were too cloudy, farmers said on Monday. Cocoa planters however said flowers and small pods continued to proliferate on trees, thanks to good soil moisture content. Farmers said they were applying chemicals in plantations to avoid diseases and to help pods to grow bigger.

Jul 16 - Daily Cocoa Futures Market Report

After the "high rush" with a peak price of GBP 1939 on 8.7.19, the market is back within the range of GBP 1870/1803, which has continued since 10.6.19. "Back to normal if it weren't for the rising differentials for raw cocoa and the associated and rising rates for cocoa butter and cocoa mass. The cocoa market will remain very interesting and very volatile and every "moment of weakness" should be used to hedge prices. September 19 ended yesterday's trading day with a minus of GBP 48=GBP 1821. The Brazilian milling figures also show a significant increase over the previous year with a plus of 14.66%. Today the ECA grinding figures are expected. A plus of 1%-2% is expected.

Jul 16 - India to keep sugar export subsidies even as rivals complain - sources 
India will keep its sugar export subsidies despite complaints to the World Trade Organization (WTO) from rival producers Brazil and Australia, though it will tweak how it provides them, four sources directly involved in the matter said. The export subsidies are designed to increase shipments from the world's second-biggest sugar producer and reduce their brimming inventories. But that could pressure global prices that have only eked out a 2.1% gain this year after plunging more than 20% in 2018.

Jul 15 - Speculators cut arabica net short position to nearly 2-yr low
Speculators cut their net short position in arabica coffee on ICE Futures U.S. to its lowest in nearly two years in the week to July 9, U.S. government data showed on Friday. Speculators hiked their net long position in cocoa to a one-year high, cut their bearish stance on raw sugar, and increased their net short position on cotton futures and options, the data from the U.S. Commodity Futures Trading Commission showed.

 
Jul 15 - Colombia to create fund to rescue coffee farmers when prices drop
Colombia, the world's top supplier of washed arabica, is creating a special fund to subsidize coffee farmers when international prices fall below production costs. The stabilization fund, announced by President Ivan Duque late on Thursday, is the country's latest bid to help farmers struggling as coffee prices have fallen to their lowest in more than a decade and many are operating at a loss.

Jul 12 - Weekly Pepper Int'l Market report, 8-12 July 2019 (IPC)

- Market this week showed mixed response. In local market, Malabar black pepper was reported stable and relatively unchanged as compared to the previous week with an average of USD 4,874 per Mt. India black pepper price in local currency was reported at INR 334 per Kg on Thursday. Indonesia black and white pepper was also reported stable as compared to the previous week with an average of USD 2,054 per Mt for black pepper and USD 3,435 per Mt for white pepper. Indonesian black and white pepper in local currency trade an average of IDR 29,000 per Kg and IDR 48,500 per Kg respectively. Malaysian black and white pepper was reported stable and relative unchanged as compared to the previous week, averaging at USD 2,476 per Mt for black pepper and USD 3,911 per Mt for white pepper. Viet Nam black pepper was reported to be traded with a 1% deficit as compared to the previous week, averaging at USD 1,931 per Mt, whilst Viet Nam white pepper reported unchanged, averaging at USD 2,847 per Mt. Sri Lanka black pepper continued to traded negatively and was reported the lowest ever prices in recent years. Recording a 23% deficit as opposed to the previous week at an average of USD 2,069 per Mt. China white pepper was reported stable as compared to the previous week averaging at USD 4,706 per Mt.
- In international market, FOB price of India black pepper was reported stable as compared to the previous week at an average of USD 5,165 per Mt. Indonesia black and white pepper was also reported stable as compared to the previous week with an average of USD 2,512 per Mt for black pepper and USD 4,060 per Mt for white pepper. Malaysia black and white pepper were reported unchanged, averaging at USD 3,685 per Mt and USD 5,275 per Mt respectively. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable and relatively unchanged as compared to the previous week with an average at USD 2,309 per Mt, USD 2,374 per Mt and USD 3,459 per Mt respectively. China white pepper was reported with a 4% increase as opposed to the previous week at an average USD 5,106 per Mt in the international market.
- US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

Jul 12 - Daily Cocoa Futures Market Report

Yesterday was the third day in a row with bigger losses, we are now only GBP 15 away from the start of this week. The rally on Monday was accordingly of short duration. The Sep 19 found good support at GBP 1854 / 10 days moving average and ended the day at GBP -22 at GBP 1854. Next support and greater buying interest we see around GBP 1800. The Sep / Dec 19 spread traded to a new low of GBP -89, is someone not left out of position here or is there not such a big panic about the supply of cocoa? Next Tuesday the European Grinding figures will be published, we expect a moderate increase of about 2%. After the turbulent week we wish you a nice and relaxed weekend...

Jul 12 - USDA raises domestic sugar stocks outlook, reduces Mexican import forecast
The U.S. Department of Agriculture (USDA) on Thursday raised its outlook for domestic sugar stocks as it sharply reduced its forecast for imports from Mexico for 2019/20. The USDA put the closely watched stocks-to-use ratio at 13.5 for 2019/2020 compared to its forecast of 12.4 last month. The department in its monthly report increased its production outlook for the year to 9.260 million short tons (8.4 million tonnes) from the 9.138 tons seen last month on higher cane output from Louisiana. 

Jul 12 - Brazil escalates WTO dispute over India sugar subsidies
The Brazilian government said on Thursday it had asked the World Trade Organization to establish a panel aimed at resolving its dispute over Indian sugar subsidies, according to a joint statement by the foreign and agriculture ministries. The WTO's Dispute Settlement Body is expected to take up Brazil's request at its meeting scheduled for July 22, the statement said. Australia and Guatemala also lodged complaints against India on Thursday, according to the ministries. 

Jul 12 - Small farmers say low coffee prices could eliminate unique flavors
Small farmers in countries where production is still mostly artisanal and coffee is a subsistence crop are looking for ways out of the current price crisis, saying failure to guarantee higher income will eventually extinguish unique coffee flavors. Increased global coffee output in recent years due in part to higher productivity in countries using machinery and irrigation have driven coffee prices to decade lows, leading small-scale producers with higher production costs to struggle to make a profit.

Jul 11 - Daily Cocoa Futures Market Report

The fortification, triggered by the grinding figures in Malaysia +45.1% and Ivory Coast +11.2%, was not "sustainable". As on Tuesday, profit taking by the "Longs" as well as hedge sales put the market under pressure again in the last 90 minutes. After the dramatic rise on Monday, with a high of GBP 1939, the Sept. 19 forward fell yesterday to GBP 1866 and ended the day with a minus of GBP 21=GBP 1876. One could almost say: "back to normal" the closing price on Friday July 5 was quoted at GBP 1838. The same can be seen in spreads. The July/Sept. fell back to -GBP 74, Sept./Dec. to -GBP 29. First support should start from GBP 1805/1800...

Jul 11 - Ivory Coast, Ghana add 'living income' cocoa premium to fight poverty
Top global cocoa producers Ivory Coast and Ghana have imposed a fixed "living income differential" of $400 a tonne on all cocoa contracts sold by either country for the 2020/21 season, an official letter seen by Reuters shows. The premium, which replaces an earlier proposal for a floor price for cocoa contracts, is part of a wider plan to combat poverty among farmers in Ivory Coast and Ghana, which together account for more than 60% of global supply.

 
 Jul 11 -
Colombia proposes coffee nations group to provide bigger influence on market

Colombia proposed on Wednesday that coffee producing nations form an association to have a stronger influence in the coffee market, as producers from around the world meet in Brazil to discuss the economic sustainability of coffee production. "We need action, because the problem is clear: there are 25 million coffee producers that can barely cover their production costs," said Eugenio Velez, a director at Colombia's coffee federation in the opening ceremony of the 2nd Global Coffee Producers Forum.

Jul 10 - Daily Cocoa Futures Market Report

After the dramatic rise and immensely volatile spreads, the market recovered from these events yesterday. Sep 19 temporarily lost close to GBP 50 (half of the previous day's "gains"), traded at lows of GBP 1887 and ended the day just below the psychological barrier of GBP 1900 at GBP -38 at GBP 1897. Spreads normalised, with good volume, too, and Sep/Dec 19 traded back to GBP -22, Dec 19/ March 20 at GBP +15. Was it just profit taking by the longs and hedge pressure from the origin yesterday? Similar to the previous day, all market participants are puzzling over the immense volatilities of the last few days. One thing is certain: until the Cocoa-Pec comes into the market for 20/21, these volatilities will certainly continue to accompany us closely. It feels like a "Silly Season" on steroids...

Jul 09 - Brazil frosts hit coffee, sugarcane areas; production impact seen
Frosts were reported in several agricultural areas in Brazil over the weekend, including coffee and sugarcane production regions, and cooperatives and companies expected some impact as they assessed the situation. Cane, coffee, late-planted winter corn and wheat are the most vulnerable crops in Brazil's south and southeast regions, where frosts were reported as the country was hit by the most intense polar air mass so far this year.

 Jul 09 - Speculators cut bearish arabica coffee bet to 1-1/2 year low
Speculators reduced their net short position in arabica coffee on ICE Futures U.S. in the week to July 2 to its lowest since Oct. 2017, U.S. government data showed on Monday in a report delayed because of the U.S. Independence Day holiday. Speculators reduced their bearish stance on raw sugar for the fifth straight week, cut their net long position in cocoa, and cut their net short position on cotton futures and options, the data from the U.S. Commodity Futures Trading Commission showed.

 Jul 09 - Abundant rains offer good prospects for main Ivory Coast cocoa crop: farmers
Above-average rainfall mixed with sunshine in Ivory Coast's cocoa-growing regions last week could boost the forthcoming October-to-March main crop, farmers said on Monday. The April-to-September mid-crop in Ivory Coast, the world's top cocoa producer, is tailing off and farmers said they were closely watching the development of the next main crop as no big pods were seen on trees yet.

Jul 08 - Daily Cocoa Futures Market Report

Another upward movement, on the back of the firm end of the previous day, failed last Friday. The morning saw pressure on the price, with Sep 19 trading at a low of GBP 1822, closing at GBP -10 at GBP 1839, and moderate volume. The Ivory Coast/Ghana decision continued to occupy market participants on Friday. The so-called Living Income Differential of US$ 400 is now, contrary to the previous idea, always added to the FOB selling price to guarantee the farmer a minimum price of $ 2600 (of which he receives about 70%). The difference over $ 3000 is paid into a stabilisation fund, which is supposed to compensate losses below $ 2600. We are still looking forward to the implementation, as both origins should come into the market soon for 20/21

July 05 - Weekly Int'l Pepper Market Report, 1 - 5 July 2019 (IPC) 

Market in the first week of July 2019 showed mixed response albeit slightly negative. In local market, Malabar black pepper was traded with a 2% deficit as compared to the previous week with an average of USD 4,879 per Mt.India black pepper price in local currency was reported at INR 336 per Kg on Thursday. Indonesia black pepper was reported stable, whilts Indonesia white pepper was reported to be traded with a deficit by 1% as compared to the previous week. Averaging at USD 2,052 per Mt for black pepper and USD 3,431 per Mt for white pepper. Indonesian black and white pepper in local currency were traded at an average of IDR 29,000 per Kg and IDR 48,500 per Kg respectively. Malaysian black and white pepper was reported stable and relatively unchanged as compared to the previous week, averaging at USD 2,475 per Mt for black pepper and USD 3,908 per Mt for white pepper. Viet Nam black pepper was reported to be traded with a slight 1% deficit as compared to the previous week, averaging at USD 1,945 per Mt, whilst Viet Nam white pepper reported unchanged. Sri Lanka black pepper continued to be traded negatively and was reported with the lowest ever prices in recent years. Recording a 5% deficit as opposed to the previous week at an average of USD 2,681 per Mt. China white pepper followed the negative trend and was traded with a 2% deficit.

In international market, FOB price of India black pepper was reported with slight deficit of 1% as compared to the previous week at an average of USD 5,169 per Mt. Indonesia black pepper was reported stable with an average of USD 2,509 per Mt whilst Indonesia white pepper was reported to be traded with a 1% deficit as compared to the previous week. Malaysia black and white pepper were reported unchanged, averaging at USD 3,685 per Mt and USD 5,275 per Mt respectively. Furthermore, Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with a 1% deficit as opposed to the previous week with an average USD 2,315 per Mt, USD 2,380 per Mt and USD 3,465 per Mt respectively. China white pepper was reported with a 2% deficit as opposed to the previous week at an average USD 4,921 per Mt in the international market.

US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

 

Jul 04 - Daily Cocoa Futures Market Report

With yesterday's meeting in Abidjan in the background, it was a cautious trading day with low volume. It was only late in the afternoon that profit taking from New York put the market under pressure. Sep 19 ended the day at GBP -20 at GBP 1809. The LDN / NY arbitrage came under pressure and is still volatile, trading in the last 3 days from GBP -95 to GBP -135 and now back to GBP -120. Findings from Abidjan? The Living Income Differential of $400 is fixed, this comes to bear when the spot month falls below $2600 (FOB). Many of the industry representatives are critical of the feasibility (there was no news on this), representatives of the two countries understand / do not share these concerns. "If you don't want to pay the price, you should go somewhere else! After all, it is a free market" is the answer of origin. It remains exciting and we are expecting first first-hand reports today...

Jul 04 - Coffee farmers meet in Brazil amid crisis, seek alternatives
Organizations representing coffee farmers from around the world will meet next week in Brazil as the sector faces one of its hardest times, with prices barely covering production costs and pushing farmers out of business. Brazil's city of Campinas, in the southeast state of Sao Paulo, will host the 2nd World Coffee Producers Forum on July 10-11. The first edition was held in 2017 in Medellin, Colombia.

 Jul 04 - Industry doubts remain over I.Coast, Ghana cocoa floor price
Ivory Coast and Ghana - the world's leading cocoa producers - failed on Wednesday to come to an agreement with the chocolate industry over how to introduce a new floor price for their exports. The West African neighbours said last month they would fix a minimum price of $2,600 per tonne (free-on-board) that chocolate companies must pay from the 2020/21 season if they want to access their more than 60% share of global supply. 

 
 Jul 04 -
Premium prices attract small farmers back to coffee growing in Zimbabwe

David Muganyura smells the coffee cherries on the slopes of his plot and breaks into a smile, as he chats to workers who are harvesting a crop he expects to be his biggest to date. A long-time Zimbabwean coffee grower, Muganyura almost gave up on the crop when prices slumped to as low as U.S. 20 cents a pound at the turn of the millennium, and foreign buyers took flight after land seizures drove out more than 120 white commercial coffee farmers under the banner of post-colonial reform.

 
 Jul 04 -
Ethiopia sugar imports to jump by more than a quarter as output drops - USDA

Sugar imports into Ethiopia, Africa's second-most populous country, are expected to climb 29% in 2019/20 from the previous year as production falls, a U.S. Department of Agriculture (USDA) attache said in a report published on Wednesday. Ethiopian sugar production for the 2019/20 season is pegged at 240,000 tonnes, down sharply from the USDA's previous estimate of 400,000 tonnes, as the sector grapples with bad weather and mismanagement, the attache in Addis Ababa said.

Jul 03 - Daily Cocoa Futures Market Report

On the back of Monday's strong upward movement (triggered by reports of the destruction of illegal plantations and the play with uncertainty over the feasibility of the minimum price), the market opened firmer. The Sep 19 date breached the previous day's highs by one (1) GBP, but lacked the momentum to move prices further north. With 30 minutes to go, there was some small profit taking and Sep 19 ended the day at GBP 1829 / GBP -15 on the 10 day moving average. Further activity in the grading room in LDN led to a very weak Jul / Sep 19 spread of GBP -51! Also here mainly still larger quantities of Regrades Cameroon. The market is waiting for solid news from today's meeting in Abidjan. It promises to continue to be a exciting week in cocoa...  

Jul 03 - Colombia coffee federation calls for $2 floor for prices
Colombia, the world's leading grower of washed Arabica coffee, called on Tuesday for an international base price of $2 per pound so that producers can have a guaranteed income that would prevent farmers abandoning the sector. Colombian coffee producers have faced a crisis in recent months due to low international prices, prompting the government to earmark $79.5 million for subsidies, debt relief for farmers and the renewal of coffee plantations.

Jul 02 - Daily Cocoa Futures Market Report   

From the beginning there was only one direction: north. The range on the 1st trading day in July 2019 was GBP 42. The high was GBP 1848 and just below, with GBP 1844 = + GBP 39 the day ended. It is suspected that speculative buying was the main trigger for yesterday's fortification before the talks in Abidjan started on 3 July 19. The long-term "downtrend" that has continued since May 2018 has not yet been broken (see chart). This week could be exciting, with all the accompanying news (e.g. the destruction of illegal plantations in Côte d'Ivoire, it is spoken of 500,000mt!) from the origin before the meeting in Abidjan. People who have been active in the cocoa world for a long, very long time have heard announcements of this kind several times in the last 40/50 years and are more or less covered up with any comments.

Jul 02 - Ivory Coast to eliminate illegal cocoa output to control supply
Ivory Coast plans to stamp out illegal cocoa production from national parks and forest reserves over the next five years to control output better and support a new floor price, officials from the government and its cocoa regulator told Reuters. The plan will be announced this week at a meeting in Abidjan where officials from Ivory Coast and Ghana will discuss with the industry details of the strategy to establish the floor price, said three officials, who asked not to be named.

Jul 01 - Daily Cocoa Futures Market Report

While the morning focused on the 19 options that expired last Friday in July (went off the board at GBP 1796), the late afternoon saw pressure on prices. Triggered by a volatile July / Sep 19 spread (GBP -43 to GBP -25), Sep 19 traded at lows of GBP 1803. Closing GBP -16 at GBP 1805 near the low and strong support at GBP 1800. The industry continued to accompany the market with price hedges close to lows. Otherwise silence in the cocoa market...the fundamental market participants are waiting for new insights and details on the feasibility from the minimum price meeting on 3 July in Abidjan. Commitment of Traders as at 25.06. with -96 lots almost unchanged the combined net long positions now stand at 124,203 lots.

Jul 01 - Four trade houses buy record-large raw sugar delivery - traders
Sucres et Denrees (Sucden), Alvean, ED&F Man, and Louis Dreyfus Company scooped up the delivery of the July raw sugar against ICE Futures U.S. contract that expired on Friday in the largest delivery on record, traders said. The delivery against the July raw sugar contract on ICE Futures U.S. totaled about 41,500 lots, about 2.1 million tonnes of raw sugar, three traders told Reuters.

Jul 01 - Ivory Coast and Ghana team up for greater share of chocolate wealth
Kouakou Kinimo is a pretty typical Ivory Coast cocoa farmer. He works a small holding. At 52, he's roughly the mean age for a West African grower. And, like many farmers, he doesn't want any of his six children to follow in his footsteps. "I suffered," he said, seated beneath a tree dripping with green cocoa pods on his plantation near the border with Ghana. "I worked so hard and have nothing to show for it."

Jul 01 - U.S. senator says he's blocking USDA nominees over biofuel waivers
Senator John Kennedy of oil refining state Louisiana is blocking the confirmation of three senior appointees to the Department of Agriculture until the department butts out of parts of the administration’s biofuels policy, according to a letter he sent this week to Agriculture Secretary Sonny Perdue. The move underscores the rising sensitivity of U.S. biofuel regulations requiring ethanol in gasoline, which have split the rival oil and corn industries and torn President Donald Trump between two key constituencies in his reelection campaign.

Jun 28 - INT'L Weekly Pepper Market Report, 24-28 June 2019 (IPC)
- Market this week showed mixed response. In local market, Malabar black pepper was traded with a 1% increase as compared to the previous week with an average of USD 4,957 per Mt. India black pepper price in local currency was reported at INR 343 per kg on Thursday. Though Indonesian Rupiah strengthen against US Dollar, Indonesia black and white pepper were reported to be traded with a 3% and 1% deficit respectively as compared to the previous week, averaging at USD 2,048 per Mt for black pepper and USD 3,461 Mt for white pepper. Indonesian black and white pepper in local currency lost IDR 1,000 per Kg and were traded at an average of IDR 29,000 per Kg and IDR 49,000 per Kg respectively. Malaysian black and white pepper was traded with an increase of 1% as compared with the previous week, averaging at USD 2,469 per Mt for black pepper and USD 3,899 per Mt for white pepper. Viet Nam black and white pepper was reported stable when compared with previous week, averaging at USD 1,962 per Mt for black pepper and USD 2,848 per Mt for white pepper. Sri Lanka black pepper continued to be traded negatively and was reported with the lowest ever prices in recent years. Recording a 4% deficit as opposed to the previous week at an average of USD 2,837 per Mt. Whilst, China white pepper was traded with an increase of 2% as compared with the previous week averageing at USD 4,800 per Mt.
- In international market, FOB price of India black pepper was reported with a 1% increase as compared to the previous week at an average of USD 5,246 per Mt. Indonesia black and white pepper were reported negative and were traded with a 2% and 1% deficit respectively as compared to the previous week with an average of USD 2,505 per Mt for black pepper and USD 4,088 per Mt for white pepper. Malaysia black and white pepper were reported with a significant 3% spike as opposed to the previous week, averaging at USD 3,685 per Mt for black pepper and USD 5,275 per Mt for white pepper. Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported stable with an average USD 2,343 per Mt, USD 2,408 per Mt and USD 3,493 per Mt respectively. China white pepper was reported with a 2% increase as opposed to the previous week at an average USD 5,000 per Mt in the international market.
- US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

Jun 28 - Export and Import of Pepper by SPAIN (IPC)
- Spain, officially the Kingdom of Spain is a country mostly located in Europe. Its continental European territory is situated on the Iberian Peninsula. Its territory also includes two archipelagoes : the Canary Islands off the coast of Africa, and the Balearic Islands in the Mediterranean Sea make Spain the only European country to have a physical border with an African country (Morocco). Spanish cuisine consists of a great variety of dishes which stem from differences in geograhpy, culture and climate. Spain's extensive history with many cultural influences has led to a unique cuisine. Furthermore, to meet its needs of spices especially pepper, Spain imports pepper from several production countries both for domestic consumption or to re-export purpose.
- In 2017, Spain was reported to have imported a total 4,377 Mt of pepper. The average pepper import by Spain in 2017 was reported at 365 per month with the highest quantity recorded in October with 499 Mt. The total expenditure of pepper by Spain amounted to USD 27.5 Million. The average price of the total pepper imported by Spain in 2017 was reported at USD 6,276 per Mt. Furthermore, Spain was reported to have exported a total of 3,677 Mt of pepper. Spain on average exported a total of 306 per month with the highest quantity recorded in May with 391 Mt. The total revenue of Spain's pepper export in 2017 was reported to be as high as USD 18.2 Million. Thus, recording an average price of the total pepper exported by Spain to be at USD 4954 per Mt.
- Year 2018 saw increasing trend in terms of quantity of pepper imported by Spain. Spain was reported to have imported a total of 5,275 Mt. Thus, recording an increase of 21% as compared to the same period in 2017. The average import of pepper by Spain was reported to be 440 Mt per month with the highest quantity recorded in April with 580 Mt. Although increasing in term of quantity, the pepper import by Spain decreased by 22% in terms of value which amounted to USD 21.3 Million. Thus, recording an average price of the total pepper imported by Spain at USD 4,043 per Mt which decreased by 36% as opposed to the previous year. Furthermore, pepper exported by Spain decreased by 11% as compared to previous year totalling at 3,267 Mt. The average pepper export by Spain was reported at 272 Mt per month which peaked in May 2018 with 432 Mt. In accordance with decreasing in term of quantity, the pepper export by Spain also decreased by 20% in terms of value which amounted to USD 14.6 Million. The average price of the total pepper exported by Spain was reported at USD 4,484 per Mt, recording a 9% decrease when compared to the previous year.
- At the beginning of 2019, pepper imported by Spain as of March 2019 reported continued its increasing trend by 24% as compared with the same period in 2018, totalling 1,505 Mt. The total expenditure of pepper imports by Spain as of March 2019 decreased by 14% as compared to previous year in the same period, totalling USD 4.9 Million. Recording an average price of the total pepper imported by Spain at USD 3,224 per MT. Furthermore, pepper exported by Spain also reported an increase of 23% as compared with the same period in 2018 totalling at 1,000 Mt. By the end of March 2019, the total revenue of pepper export by Spain was reported to have reached USD 3.3 Million, recording a loss 21% when compared to the same period in 2018. The average price of the total pepper exported by Spain was reported at USD 3,307 per Mt.
As of March 2019, the top five origins of pepper imported by Spain were reported to be Viet Nam with 354 Mt (a decrease of 1% compared with the same period in 2018), Brazil with 300 Mt (an increase of 20%), India with 178 Mt (an increase of 89%), Indonesia with 134 Mt (an increase of 65%) and Netherlands with 124 Mt (a decrease of 22%). The significant increase of Spain import from India and Indonesia could be contributed to the fact that Spain directly imported pepper from producing countries instead of "Middle-Man" countries like Netherlands and Germany (a decrease of 37%).
- Furthermore, Spain's top five country destinations for its pepper were reported to be Algeria with 238 Mt (an increase of 100% compared with the same period in 2018), France with 199 Mt (an increase of 47%), United States of America with 77 Mt (an increase of 91%), Portugal with 72 Mt (a decrease of 14%) and Italy with 72 Mt (an increase of 71%).

Jun 28 - Daily Cocoa Futures Market Report

Consolidated the market unchanged in the morning session, after opening NY, quotations came under pressure. Driven by New York, the Sep 19 forward traded at a low of GBP 1804 and found good support near the GBP 1800 mark. These prices did not last long and the market ended the day almost unchanged at GBP -8 at GBP 1821. Volume was reasonable, mainly due to large spread trading of July/Sep 19 and Sep/Dec 19 spreads, which achieved new lows at GBP -35 and GBP -34 respectively. The first half of the year would have been over today. With the previous lows of GBP 1599 (end of March) and highs of GBP 1849 (mid-June) we are more or less where we started the year (GBP 1791).

Jun 28 - Bunge's Brazil sugar unit posts record cane crushing numbers - company
Bunge Açúcar & Bioenergia, the Brazilian sugar unit of commodities trader Bunge Ltd, posted in May and June some of its best results yet for cane crushing volumes, the company said on Thursday. Bunge said its eight mills operating in Brazil crushed 2.65 million tonnes of cane in May, the largest amount of cane processing reported by the Brazilian sugar unit since the food processor started operations in Brazil in 2007.

 Jun 28 - Coffee slump reaps bitter harvest for Central American migrants 
Toward the end of 2018, Honduran coffee farmer Mario Lopez paid a human smuggler, or coyote, to take him to the United States in a bid to escape the economic ruin engulfing him at home. In mid-November, the coffee farmer and his 12-year-old daughter undertook a perilous 35-day journey up through Mexico after a collapse in international coffee prices destroyed the business that he had dedicated his life to, his wife told Reuters.

Jun 28 - French sugar maker Tereos picks former deputy as new chairman
French sugar maker Tereos said on Thursday its supervisory board had elected Jean-Charles Lefebvre as its new chairman a day after his predecessor lost his board seat at a general meeting. Lefebvre was previously deputy chairman of Tereos, a farmer-owned cooperative and one of the world's largest sugar makers.

Jun 27 - Daily Cocoa Futures Market Report

With a closing price of GBP +7 at GBP 1827 / Sep 19, the cocoa market broke through the much-flattered mini-down trend of recent days. With little volume and a range of GBP 24, the market alternated between restrained industrial interest and restrained selling pressure. The market was well supported by the previous day's lows at GBP 1812, where technically we now have a double bottom to break through. The Jul/Sep 19 and Sep/Dec 19 spreads traded at GBP -27 and GBP -28 respectively on new lows. One of the reasons is the increased activity in the grading room in London but ATTENTION! 99% of these are regrades from old Cameroon stocks.

Jun 27 - Sugar firm Tereos says members back strategy, but chairman loses seat
The members of French sugar cooperative Tereos backed the company's existing strategy on Wednesday, electing a supervisory board that mostly supports management's plans, although Chairman Francois Leroux lost his seat, the company said on Wednesday. The company's strategy has come under fire from some cooperative members concerned by a plunge in profit.

Jun 26 - Daily Cocoa Futures Market Report

Now yesterday was the 4th day in a row with lower highs and the cocoa market continued to follow, tired by the persistent heat, the "mini down trend".  The Sep 19 lost GBP -12 and ended the day at GBP 1820. If the daily chart looks like a "recovery" or a "breather", we know from experience everything that market participants "want" or worst "need" will not happen.

Jun 26 - Sugar maker Tereos on cusp of crucial strategy vote
Tereos, one of the world's largest sugar makers, is facing a key internal vote on Wednesday that could change the group's strategy, with senior management challenged by cooperative members concerned by a plunge in profit. Tereos, like several other European sugar producers, felt the impact of a slump in sugar prices to historic lows last year linked to a surge in supplies, partly driven by the scrapping of output quotas from the European Union in 2017. 

Jun 25 - Daily Cocoa Futures Market Report

A weak opening was followed by an even weaker morning. The Sep 19 lost about GBP 20 in the first 2 hours of yesterday's trading and traded at lows of GBP 1829. A firm US$ then provided a firmer end to the day in the afternoon. With a range of GBP 21 and low volume, Sep 19 ended the day at GBP -12 at GBP 1832, the third day in a row with lower highs. Here some analysts may already see a "short term trend"...Arrivals in Côte d'Ivoire are at 2.076 mt vs. 1.860 mt as of 23.06.19 (+11.6%). Despite good arrivals it is the 6 week in a row with same / weaker week numbers, also here some experts see a trend and the record mid crop in danger.

Jun 25 - Ivorian cocoa farmers hope for July rains to secure main crop
Unseasonably dry weather across Ivory Coast's cocoa regions last week could weaken the next main crop if rainfall does not increase in July, farmers said on Monday. With the April-to-September mid-crop tailing off in Ivory Coast, the world’s top cocoa producer, farmers are now eyeing the development of the next October-to-March main crop.

 
Jun 25 - Brazil's Sao Martinho sees sugarcane crush up 8% in 2019/20 
Brazil's Sao Martinho SA, one of the country's largest sugar and ethanol producers, said on Monday it expects to process 8% more sugarcane in 2019/20 compared with the prior crop year. The company sees its cane crush rising to 22 million tonnes thanks to "better weather conditions and projects aimed at increased productivity," it said in a securities filing.

 Jun 24 - Daily Cocoa Futures Market Report

After the significant losses of the previous day, the corresponding counter-movement took place on Friday. The Sep 19 rose by a good GBP 40, missed the previous day's highs and ended the day with a low volume GBP +32 at GBP 1844 . If everything does not seem to correlate with the current fundamental data, Ivory Coast expects a record medium harvest of at least 600,000mt despite a collapse of the Light Crop in Ghana. The July 19 / Sep 19 spread widened yesterday to GBP -21, which does not quite fit the picture.... Commitment of Traders as at 18.01.19 show an increase of the net long position by 8,542 lots to 124,299 lots net. Long. Mainly supported by speculative longs of the Managed Money Player in New York.

Jun 24 - Ivory Coast, Ghana proposed cocoa price floor lacks other growers' support 
A cocoa price floor of $2,600 per tonne agreed by Ivory Coast and Ghana with buyers for the 2020/21 season lacks the support of other producing nations, the vice president of the World Cocoa Producers Organization said on Friday. Sayina Riman, who doubles as president of the Cocoa Association of Nigeria, said the decision by the two countries was taken without consulting other growers. Nigeria is the world's fourth-biggest cocoa producer. 

Jun 21 - Daily Cocoa Futures Market Report

Hegded pressure from the origin, speculative selling, a firm GBP...all this coupled with little resistance/hedging buying from the industry and half of Europe in holiday mode caused prices to fall sharply punctually after opening NY at 2pm. The Sep 19 traded to lows of GBP 1810, ending the day just above with GBP -42 at GBP 1812. Next support should start at GBP 1800.

Jun 21 - Int'l Pepper Market Report, Week 17-21 June (IPC)
- Market this week showed mixed response. In local market, Malabar black pepper was traded with a 3% deficit as compared to the previous week with an average of USD 4,913 per Mt.India black pepper price in local currency was reported at INR 343 per Kg on Thursday. Indonesia black and white pepper were reported stable and unchanged when compared with the previous week, averaging at USD 2,104 per Mt for black pepper and USD 3,506 per Mt for white pepper. Malaysian black pepper was traded with an increase of 2% as compared with the previous week.Whilst Malaysian white pepper was traded stable and recorded insignificant movement. Viet Nam black pepper was reported with a4% spike as opposed to the previous week with an average of USD 1,961per Mt. Whilst Viet Nam white pepper was reported stable. Sri Lanka black pepper continued to be traded negatively and was reported with the lowest ever price since recent years. With a record of 4% deficit as opposed to the previous week,the negative trend in Sri Lanka market had pushed Sri Lanka pepper price below USD 3,000 per Mt, averaging at USD 2,948 per Mt. Furthermore, China white pepper was traded with a 1% deficit as compared with the previous week with an average of USD 4,710 per Mt.
- In international market, FOB price of India black pepper was reported with a 2% deficit as compared to the previous week at an average of USD 5,200 per Mt. Indonesia black and white pepper were reported stable and unchanged with an average of USD 2,567 per Mt and USD 4,138 per Mt respectively. Malaysia's FOB prices as released by Malaysian Pepper Board experienced a significant 14% and 12% spike respectively as opposed to the previous week, averaging at USD 3,572 per Mt for black pepper and USD 5,138 per Mt for white pepper. Viet Nam black pepper 500 g/l and 550 g/l were reported stable whilst Viet Nam white pepper was reported with a 1 % increase as opposed to the previous week. China white pepper was reported with the same 1% deficit as compared to the prevoius week at an average USD 4,910 per Mt in the international market.
- US market reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

Jun 21 - Export and Import of Pepper by the NETHERLANDS (IPC)
- The Netherlands is a country located mainly in North-western Europe. In the past, Netherlands had an important role in the spread of pepper in the world. In 1595, Houtman of Holland made a successful voyage to Indonesia. This was the beginning of monopoly spice trade. Netherlands gradually established a firm grip over the pepper producing centers near Lampung in Sumatera and Banten in Java. Pepper is a thriving agriculture activity in these regions even today. Today, Netherlands is one of the most important pepper traders in the world. Since 2017, pepper import and re-export by Netherlands have been known to be high.
- In 2017, Netherlands was reported to have exported a total of 9,916 Mt of pepper. Netherlands on average exported a total of 826 Mt per month with the highest quantity recorded in May with 989 Mt. The total revenue of Netherland's pepper export in 2017 was reported to be as high as USD 80.1 Million. Furthermore, Netherlands was reported to have imported a total 13,603 Mt of pepper. The average pepper import by Netherlands in 2017 was reported 1,089 Mt per month with the highest quantity recorded in October with 1,372 Mt. The total expenditure of pepper import by Netherlands amounted to USD 91.9 Million.
- Year 2018 saw a decreasing trend in terms of quantity of pepper exported by Netherlands. Netherlands was reported to have exported a total of 8,594 Mt. Thus, recording a decrease of 13% as compared to the same period in 2017. The average export of pepper by Netherlands was reported to be 716 Mt per month with the highest quantity recorded in January with 868 Mt. In accordance with decreasing in term of quantity, the pepper export by Netherlands also decreased by 34% in terms of value which amounted to USD 52.7 Million. Furthermore, pepper import by Netherlands increased by 9% as compared to previous year totalling at 14,209 Mt. The average pepper import by Netherlands was reported at 1,184 Mt per month which peaked in June 2018 with 1,566 Mt. Although increasing in term of quantity, the pepper import by Netherlands decreased by 28% in terms of value which amounted to USD 66.5 Million.
- At the beginning of 2019, pepper exported by Netherlands as of February 2019 continued its decreasing trend by recording a decreased of 16% as compared with the same period in 2018 with total quantity of 1,442 Mt. By the end of February 2019, the total revenue of pepper export by Netherlands was reported to have reached USD 7.3 Million, recording a loss of 40% when compared to the same period in 2018. Furthermore, pepper imported by Netherlands also reported decrease by 7% as compared with the same period in 2018, totalling 2,380 Mt. The total expenditure of pepper imports by Netherlands as of February 2019 decreased by 35% as compared to previous year in the same period, totalling USD 9.6 Million.
- As of February 2019, Netherland's top five country destinations for its pepper were reported to be Germany with 328 Mt (a decrease of 9% as compared with the same period in 2018), France with 243 Mt (an increase of 43%), Belgium with 189 Mt (a decrease of 51%), United Kingdom with 137 Mt (an increase of 22%) and Spain with 70 Mt (a decrease of 82%). The decrease of export to Spain and Belgium was the result of Spain and Belgium directly imported pepper from pepper producing countries like Viet Nam and Brazil as these two origins are famous for its competitive prices.
- Furthermore, the top five origins of pepper imported by Netherlands as of February 2019 were reported to be Viet Nam with 833 Mt (a decrease of 5% compared with the same period in 2018), Brazil with 826 Mt (an increase of 9%), Indonesia with 339 Mt (an increase of 5%), Germany with 85 Mt (a decrease of 62%) and Spain with 71 Mt (a decrease of 31%). The significant decrease of Netherlands import from Germany and Spain could be that Netherlands directly imported pepper from pepper producing countries such as; Brazil and Indonesia as their Quantity of exported pepper to Netherlands increased by 76 Mt and 16 Mt respectively.

 Jun 21 - Heavy rains dampen Nigeria's 2018/19 cocoa outlook 
Heavy rainfall and poor sunshine across Nigeria's cocoa-growing regions raises the likelihood of black pod disease which would hurt the main crop this season, an industry body said on Thursday. Farmers in Nigeria, the world's fourth-biggest cocoa grower, are growing increasingly worried about bean quality and black pod disease in the wake of heavier rains. Besides preventing mould, sunny weather is also needed for a bigger bean size.

Jun 20 - Daily Cocoa Futures Market Report

A slightly firmer opening in London was followed by a stronger fortification with the opening in New York. Towards the end of the day, prices fell slightly and Sept.19 ended the day up GBP 4/GBP 1854. It was a bit visible with low sales of everything. The origin was in the market and sold from the 2019/20 season, triggering hedge sales which were gratefully received at the lows of the day by the " bulls ". Since the end of the "Accra meeting" the tension is a bit out of the market and many market participants ask themselves: was it now, how should the minimum price be implemented and what can one expect from the next meeting, the "Abidjan meeting" on July 3rd? Many market participants are critical of a "state-regulated" minimum price....

Jun 20 - Tereos begins using new rail system to ship Brazil sugar cargo
French sugar trader Tereos for the first time used a new rail system developed through a partnership with local logistics company VLI to ship raw sugar cargo out of Brazil, Tereos said on Wednesday. The vessel Rosco Sandalwood loaded 26,000 tonnes of sugar in the Tiplan terminal at Santos port, heading to China.

 
Jun 20 - Ghana opens cocoa light crop season, price unchanged at 7,600 cedis/tonne
Ghana's Cocobod will open its cocoa light crop purchases on Friday, maintaining the price it pays farmers at 7,600 cedis ($1,407) per tonne, the regulator said on Wednesday. The world's second largest cocoa exporter after Ivory Coast runs a two-cycle cocoa season consisting of the main crop which is mainly exported and the light crop harvest, discounted for local grinders.

Jun 19 - Daily Cocoa Futures Market Report

Same picture again: NY-induced, slightly firmer opening in London, then rather slow sideways trading with moderate bandwidth and low volumes below 20,000 lots. A sign of relative reluctance in light of the current minimum price agenda from Ghana and Côte d'Ivoire. A month before Last Trading Day on the Jul 19 contract, the Jul/Sep19 spread, which converged on GBP-16, is moving more into focus. Gradings on the July date: None. From the origin, it is reported that Ghana has started talks with a bank consortium to discuss the financing of the 2019/20 harvest, amongst the usual reports about the "Accra Meetings". Usually a sign that the majority of the crop is pre-sold. Interestingly, however, the target loan amount was raised from US$1.3 billion to US$1.5 billion.

Jun 19 - U.S. corn problems boost Brazil ethanol outlook, might affect sugar
Brazilian sugar mills are closely watching the 2019 U.S. corn crop for reduced harvests that could boost prices for the cereal, raising ethanol production costs there and opening room for Brazilian ethanol to gain domestic market share. In that scenario, ethanol demand in Brazil would likely rise further, experts say, leading mills to maintain current production mix that heavily favors ethanol at the expense of sugar.

Jun 18 - Daily Cocoa Futures Market Report

Reversal of the upward trend, short-lived correction or consolidation at current levels? We think it was the latter yesterday. The Sep 19 traded in a range of GBP 36 (High GBP 1860 / Low GBP 1824), looking and finding good support on the 10 day Moving Average (GBP 1827) day, the next technical support. The bullish trend line remains intact as shown on the chart. Closing price Sep GBP -5 at GBP 1840.

Jun 17 - Daily Cocoa Futures Market Report

Similar to last Thursday, the market found good fundamental support from levels below GBP 1850 / Sep 19. Buying interest from the industry prevented a further slide in prices, on the upside the market is struggling to sustain levels above GBP 1860. Closing GBP -5 at GBP 1845 / Sep 19. Commitment of Traders on 11.06.19 shows a net increase in long position from 11,125 lots, now combined to 115,757 lots net long. No wonder, London increased by GBP 71 in the last reporting period, NY + US$ 132. At the beginning of the week, we spare ourselves reports about the "Accra-Meeting" (a winged term at which we will still have a lot of "joy") and wait for something solid....maybe already on 03.07.19?

Jun 17 - Global 2019/20 coffee demand to rise as output slips - USDA
Global coffee consumption in set to swell to a new record while production is expected to drop 3.1% to 169.1 million 60-kg bags as Brazil enters the off-year in its production cycle, the U.S. U.S. Department of Agriculture (USDA) on Friday. While worldwide consumption is set to rise 2.5% to a record-high 167.9 million bags, global imports are only set to increase 0.1% as demand gets met through a drawdown in stockpiles, the USDA said in its biannual report.

 
 Jun 17 -
Speculators get long cocoa, slash bearish bet in raw sugar

Speculators switched to a net long position in cocoa for the first time since January on ICE Futures U.S. in the week to June 11, data from the U.S. Commodity Futures Trading Commission showed on Friday. Speculators sharply reduced their net short position in raw sugar to its smallest in about a month, reduced their bearish stance in arabica coffee, and increased their net short position on cotton futures and options, the data showed.

Jun 14 - INT'L WEEKLY PEPPER MARKET REPORT, 10-14 June 2019 (IPC) 

Market this week showed mixed response. In local market, Malabar black pepper was traded with a 1% deficit as compared to the previous week with an average of USD 5,039 per Mt. India black pepper price in local currency was reported to experience a continuous drop from the beginning of the week and was closed at INR 347 per Kg on Thursday. As the market resume after the Eid Mubarak Holiday, Indonesia black and white pepper were traded at an average of USD 2,104 per Mt and USD 3,506 per Mt respectively. Sarawak black and white pepper was reported stable and relatively unchanged when compared with the previous week. Recording a 2% spike as opposed to the previous week, Viet Nam black pepper became the only product which recorded an increase and was traded at an average of USD 1,890 per Mt. Whilst Viet Nam white pepper was reported stable. Sri Lanka black pepper continued to be traded negatively, recording a 5% deficit as opposed to the previous week while China white pepper was traded with an average of USD 4,775 per Mt.

In international market, India was the only origin to have recorded a deficit. FOB price of India black pepper was reported with a 1% deficit as compared to the previous week at an average of USD 5,327 per Mt. Indonesia black and white pepper were traded internationally at an average of USD 2,567 per Mt and USD 4,138 per Mt respectively. Malaysia black and white pepper remained stable and showed insignificant movement. As offer dried up Viet Nam black pepper 500 g/l, 550 g/l and Viet Nam white pepper were reported with a significant 4%, 4% and a 3% spike respectively as opposed to the previous week. China white pepper was reported at an average of USD 4,975 per Mt in the international market.

US market was reported stable and unchanged with Muntok spot price being reported at USD 5,072 per Mt.

Jun 14 - Import of Pepper by FRANCE (IPC)

France, officially the French Republic, is a country whose territory consists of metropolitan France in Western Europe and several overseas regions and territories. The metropolitan area of France extends from the Mediterranean Sea to the English Channel and the North Sea and from the Rhine to the Atlantic Ocean. The overseas territories include French Guiana in South America and several islands in the Atlantic, Pacific and Indian oceans. France is ranked as the first tourist destination in the world. The Eiffel Tower is the world's most visited paid monument, an icon of both Paris and France. French cuisines are renowned for being one of the finest in the world. French cuisines are also regarded as a key element of the quality of life and the attractiveness of France. Therefore, to meet its seasoning need for their cuisines, France imported pepper from many pepper producing countries. Pepper was one the earliest commodities that was traded between the Orient and Europe including France. The history of medieval Europe throws up further evidence of the influence pepper had in the trading community.

In 2017, France was reported to have imported a total 10,794 Mt of pepper which 75% of it comprised of whole pepper while 2,646 Mt of it ground pepper. The average pepper import by France in 2017 was reported at 900 Mt per month with the highest quantity recorded in August with 1,126 Mt. The total expenditure of pepper import by France amounted to USD 82.0 Million, recording an average price of the total pepper imported by France at USD 7,353 per Mt for whole pepper and USD 8,364 per Mt for ground pepper.

2018 saw pepper import by France increased by 5% as compared to previous year totalling at 11,371 Mt which comprised of 8,612 Mt of whole pepper and 2,759 Mt of ground pepper. The average pepper import by France was reported at 948 Mt per month which peaked in March 2018 with 1,325 Mt. Although increasing in term of quantity, the pepper import by France decreased by 30% in terms of value which only amounted to USD 57.8 Million. The average prices of the total pepper imported by France was reported to be at 4,602 per Mt for whole pepper and USD 6,596 per Mt for ground pepper which meant a loss of 37% and 21% respectively as compared to the previous year.

At the beginning of 2019 pepper import by France as of April 2019 continued its increasing trend by recording an increased by 8% as compared with the same period in 2018, totalling 4,098 Mt which comprised of 2,984 Mt of whole pepper and 1,114 Mt of ground pepper. The total expenditure of pepper imports by France as of April 2019 decreased by 24% as compared to previous year in the same period, totalling USD 16.8 Million. The top five most of pepper imported by France both whole and ground as of April 2019 reported to come from Brazil with 1,773 Mt (an increase of 5% compared with the same period in 2018), Indonesia with 529 Mt (an increase of 48%), Germany with 499 Mt (stable at 0%), Vietnam with 494 Mt (stable at 0%) and Netherlands with 195 Mt (a decrease of 6%). Brazil during that period became the largest pepper export for French due to Brazil's most competitive price among other pepper producing countries. Furthermore, the significant increase of France pepper import from Indonesia could be contributed to the decreased of pepper import from India and Madagascar. India exported only 62 Mt to France as of April 2019, recording a drop of 65% as compared to the same period in 2018. Whilst Madagascar was reported to export only 71 Mt as of April 2019, losing 39% as compared to the same period in 2018.

 

Jun 14 - Daily Cocoa Futures Market Report

Right at the opening in London there was an increase in sales; it was not speculators but trading in hedge sales against cover from the origin that put pressure on the market. The Sept19 traded at a daily low of GBP 1832. During the afternoon, prices recovered slightly and the Sept19 ended the day with a minus of GBP 15/1850.
No new insights came from Ghana. Uncertainty about the future settlement of a minimum price, should it come, continues both in the origin and in the consumer countries.
A further meeting is to take place, was listened to yesterday, on 3.7.19 in Abidjan.

Jun 14 - Disease lowers Ghanaian cocoa output, processors must import - sources
Bad weather and crop disease have hampered the cocoa crop in second-largest producer Ghana, forcing processors there to import beans at rates higher than usual, sources familiar with the matter told Reuters. An outbreak of crop-destroying swollen shoot disease and a dry spell that reduced bean sizes have trade houses lowering their estimates for Ghanaian production to between 800,000 and 850,000 tonnes, from earlier forecasts for a 900,000-tonne harvest. 

 
Jun 14 - Brazil coffee stocks up 31% in 2019 at 12.8 mln bags -govt 
The amount of coffee in the hands of private companies in Brazil reached 12.8 million bags as of March 31, up 31% from the 9.8 million bags seen a year earlier, the government's food supply and statistics agency Conab said on Thursday. Conab, which conducts annual research on the level of coffee stocks in Brazil, said most of the coffee in warehouses at the end of March was arabica, at 92% of the total, or 11.8 million bags.

 
Jun 14 - Cargill says food industry will miss zero deforestation goal
Grains trader Cargill Inc said on Thursday it and the broader food industry will fail to meet the goal of eliminating deforestation by 2020 and pledged to do more to protect forests and native vegetation in Brazil. Cargill's statement follows data showing deforestation of the Amazon rainforest in Brazil, a top supplier of soybeans to Cargill, sped up in May to the fastest rate in a decade.

Jun 13 - Daily Cocoa Futures Market Report

Hedger sales against original cover-ups and speculative buying were balanced yesterday. London's Sept. 19 was in a narrow range of GBP 1869/1856. Closing at GBP 1865/+ 18. Other headlines from Ghana: Côte d'Ivoire and Ghana will not make any sales from the 2020/21 crop for now. The buyers (here the traders) of raw cocoa from Côte d'Ivoire and Ghana have agreed to the minimum price of US$2600. Today there will be talks with local and international raw cocoa processors and so on. The Ivory Coast with the arrivals on 31.5.19 of 1.976.000mt compared to 1.748.000mt in the previous year comes "fitting" to it...well then, the speculators will already judge it. The overreaction in the last days, it is already "sustainable" or it is only a flash in the pan...Speeches, decisions are interesting, only in the past there was often a lack of implementation.

Jun 13 - Cocoa buyers agree to floor price proposed by Ghana, Ivory Coast
Buyers of Ghana and Ivory Coast cocoa agreed on Wednesday to a minimum price of $2,600 per tonne, as proposed by the two governments to address a perceived imbalance between farmers' incomes and money made by big commodities traders. The two West African nations account for nearly two thirds of global output, yet they exert limited influence over international cocoa prices, which have stayed low in recent years due to overproduction.


 
 Jun 13 -
Sugar maker Tereos sees better year ahead after hefty losses

France's largest sugar maker Tereos was confident about next year's results because of a rebound in prices in Europe, after reporting a tenfold increase in net losses for 2018-2019 on Wednesday. World sugar prices dropped to their lowest in a decade last year due to a surge in supplies, partly driven by the scrapping of output quotas from the European Union in 2017. 

 
 Jun 13 -
Coffee harvest at Brazil's Cooxupé area way ahead of previous years

The 2019 coffee harvest at farms associated with Brazil's Cooxupé, the world's largest coffee cooperative, reached 26.65% of planted area by June 7, way ahead of the pace set in previous years, Cooxupé said on Wednesday. Last year at this time, the harvest had reached only 11.47% of the area, and it has never surpassed 13% for this period of the year since at least 2015, the cooperative said in a report.

Jun 12 - Daily Cocoa Futures Market Report

With yesterday's meetings in Accra it was a faltering trading day with a further upward trend (free of the motto: Buy the rumor, sell the fact). Sep 19 tested the long-term uptrend channel with highs of GBP 1862 (see chart). Here we see good resistance at GBP 1870. Light hedge pressure from the origin limited a further rise in prices, closing Sep 19 GBP +6 at GBP 1849. The funds / specs seem to have further appetite, which will be reflected in the next COT report. Now to the topic: Ghana and the Ivory Coast announced yesterday the idea of a "minimum (floor) price" of US$ 2.600,- pmt FOB for the 2020/21 campaign. The difference to the world market price was defined as "living income differential". Is the price incl. or excl. differential? Which FOB is referred to? Feasibility? At the moment there are more questions than answers, but all pre-sales for 20/21 have been paused....Arrivals in Ivory Coast are 1,976 mt vs. 1,748 mt as of 31.05. (+13%).

Jun 12 - Fair Trade USA raises cocoa price minimums
Fair Trade USA will increase the floor price and fixed premium it requires companies to pay cocoa farmers under its certification system, the organization said on Tuesday. The increase is designed to improve livelihoods in a sector that has long grappled with farmer poverty, child labor and deforestation.

 
Jun 12 - USDA raises domestic sugar stocks outlook 
The U.S. Department of Agriculture (USDA) on Tuesday raised its outlook for domestic sugar stocks as it slightly increased its production outlook for the 2019/20 crop year. The USDA put the closely watched stocks-to-use ratio at 12.4 for 2019/2020 compared to its forecast of 12.0 last month, while also raising the ratio for 2018/19 to 12.4 from 12.2 last month.

 
Jun 12 - Brazil cane crop ramps up after slow start; crushing up sharply in May
Brazilian mills in the center-south region sharply increased cane crushing in the second half of May, boosting sugar and ethanol production after a slow start to the season, industry group Unica said on Tuesday. Mills produced 1.86 million tonnes of sugar in the period, 38% more than late May last year. Cane crushing was up 34% to 44 million tonnes, as almost all mills in the region were fully operational.

Jun 11 - Daily Cocoa Futures Market Report

In many European countries, including Côte d'Ivoire, yesterday was a day of rest. London splashed like this until the opening in New York...but then life came into the "booth". Strong buying interest, first in New York, " from the "managed money fraction" provided for a breakthrough through the GBP 1800 level and later also the highest price of 20.6.18 / GBP 1828 was cracked. At the end of the day London recorded a plus of GBP 33/1843/1.79%. In New York, the market closed with a plus of US$ 37/2503/+ 1.49%. What is the hope...at the moment only that both stock exchanges are heavily overbought...and the "longs" want to take profits. 

Jun 11 - ISO raises 2018/19 global sugar surplus forecast
The International Sugar Organization (ISO) on Monday forecast a global sugar surplus of 1.83 million tonnes in the 2018/19 season, up from a previous estimate of 641,000 tonnes. The increase reflects "spectacular" production in India and Thailand as well as a diminished outlook for sugar consumption, the inter-governmental body said in a quarterly report.

Jun 11 - Sugar output in key Indian state to plunge on drought - govt official
Sugar production in India's western state of Maharashtra, the country's second-biggest producer, is likely to fall by 39.2% year on year in 2019/20 to 6.5 million tonnes because of a drought-hit cane crop, a senior government said Monday. The drop will ease pressure on Indian sugar mills to export surplus sugar and support global prices that fell more than 20% last year, partly because of subsidised exports.

Jun 11 - Brazil coffee exports soar in May, while price per bag sinks 
Brazilian coffee exporters shipped 3.19 million 60-kg bags of green coffee in May, 114% more than in the same month a year earlier, as large local supplies allow for continuing growth in monthly exporting volumes. The average price per bag exported by the world's largest producer, however, was the lowest for May since at least 2015 as global coffee prices remains historically low, according to a monthly report released on Monday bycoffee exporters association Cecafé.

Jun 11 - Ivory Coast cocoa farmers fear lack of rain could hurt mid-crop
Below-average rainfall in most of Ivory Coast's cocoa growing regions last week could hurt the final stages of the April-to-September mid-crop, farmers said on Monday. In the western region of Soubre, at the heart of the cocoa belt, farmers said that although drying conditions had improved, more moisture was needed to boost the mid-crop.

Jun 10 - Daily Cocoa Futures Market Report

After an unchanged opening, the market sought and found good support on the 10 day Moving Average GBP 1786 / Sep 19, which was also the lows of the trading day. In the afternoon, after the opening in New York, life came into play. The Sep 19 tested its high on May 31 (GBP 1812), but a breakthrough failed. With moderate sales, Sep 19 ended the day at GBP +12 at GBP 1810. Commitment of Traders figures as of 04.06.19 show an interesting picture, with an increase in London's net position of 2213 lots, New York reduced 2,037 lots net! At the end there is a marginal change from +176 to combined 104,632 lots net long! A look at the now more 3-digit premium from NY to LDN speaks volumes...

Jun 10 - Cuban sugar harvest one of lowest in 120 years, exports met - official  

The Cuban state-run sugar monopoly Azcuba met its export commitments for this season despite output weighing in 13% below plan, the official Prensa Latina news agency reported over the weekend, citing company spokesman Liobel Perez. Perez told the news agency this season’s performance was 31% above last year’s output of around a million tonnes.

 
 
Jun 10 -
Speculators slash net short position in arabica to 2019 low 

Speculators slashed their net short position in arabica coffee on ICE Futures U.S. in the week to June 4 to its lowest level so far in 2019, U.S. government data showed on Friday. Speculators reduced their bearish stance on raw sugar, cut their net short position in cocoa and reduced their net short position on cotton futures and options, the data from the U.S. Commodity Futures Trading Commission showed.

Jun 07 - Weekly Int'l Pepper Market Report, Week 3-7 June 2019 (IPC)
- As the Moslem around the world celebrate the Eid Fitr Mubarak 1440 H, market showed mixed response with market in Indonesia reported no activity due to Eid Fitr Holiday. In Local Market, India black pepper was reported with a 2% spike as opposed to the previous week. In local currency, India black pepper recorded a slight increase, averaging from INR 349 per Kg last week to INR 352 per Kg this week. Following the strengthening of Malaysian Ringgit towards US Dollar, Malaysian black and white pepper were traded with the same 1% spike as opposed to the previous week at an average of USD 2,401 per Mt and USD 3,875 per Mt respectively. Viet Nam black and white pepper were reported to stable and relatively unchanged in local market. Sri Lanka black pepper continued its decreasing trend from last week with a 2% deficit reported for this week, averaging at USD 3,223 per Mt.
- In international market, the trend continued with India recorded a 2% spike on its FOB price of black pepper, averaging at USD 5,374 per Mt. Malaysian black and white pepper were also reported with the same 1% spike as opposed to the previous week. Viet Nam FOB prices for black pepper 500 g/l and 550 g/l were reported with 1% increase as opposed to the previous week with an average of USD 2,250 per Mt and 2,315 per Mt respectively, while Viet Nam white pepper was reported stable at USD 3,330 per Mt.
- US market reported spot price of Muntok white pepper at USD 5,072 per Mt.

Jun 07 - Import of Pepper by CANADA (IPC)
- Canada is a country in the northern part of North America. Its ten provinces and three territories extend from the Atlantic to the pacific and northward into the Arctic Ocean, covering 9.98 Million square kilometres (3.85 million square miles), making it the world's second largest country by total area. A developed country, Canada has the sixteenth-highest nominal per capita income globally as well as the twelfth-highest ranking in the Human Development Index. Its advanced economy is the tenth-largest in the world, relying chiefly upon its abundant natural resources and well-developed international trade networks. Annually, Canada imports more than 7,000 Mt of pepper.
- In 2017, Canada was reported to have imported a total of 7,120 Mt of pepper which 59% of it comprised of whole pepper while 2,921 Mt of it ground pepper. The average pepper import by Canada in 2017 was reported at 593 Mt per month with the highest quantity recorded in November with 793 Mt. The total expenditure of pepper import by Canada amounted to USD 60.3 Million, recording an average price of the total pepper imported by Canada at USD 7,412 per Mt for whole pepper and USD 9,978 per Mt for ground pepper.
- 2018 saw pepper import by Canada slight decreased by 1% as compared to previous year totalling at 7,064 Mt which comprised of 3,785 Mt of whole pepper and 3,279 Mt of ground pepper. The average pepper import by Canada was reported at 589 Mt per month which peaked in May 2018 with 713 Mt. In accordance with decreasing in term of quantity, the pepper imports by Canada also decreased by 26% in terms of value which amounted to USD 44.9 Million. The average prices of the total pepper imported by Canada was reported to be at USD 5,616 per Mt for whole pepper and USD 7,207 per Mt for ground pepper which meant a loss a 24% and 28% respectively.
- At the beginning of 2019, pepper import by Canada as of March 2019 continued its increasing trend by recording an increased by 11% as compared with the same period in 2018, totalling 1,847 Mt which comprised of 894 Mt of whole pepper and 952 Mt of ground pepper. The total expenditure of pepper imports by Canada as of March 2019 decreased by 15% as compared to previous year in the same period, totalling USD 10.1 Million.
- Most of pepper imported by Canada both whole and ground as of March 2019 was reported to come from Viet Nam with 776 Mt (an increase of 27% compared with the same period in 2018), USA with 473 Mt (a decrease of 9%), India with 180 Mt (a decrease of 34%), Brazil with 143 Mt (an increase of 10%) and Ecuador with 112 Mt (an increase of 81%). The increase in Ecuador export to Canada showed that Canada started to shift from China (decreased by 30 Mt as compared to the same period in 2018) , South Africa (decreased by 19 Mt) and Sri Lanka (decreased by 12 Mt) which exported 71 Mt, 29 Mt and 23 Mt respectively in the same period in 2018.

Jun 07 - Daily Cocoa Futures Market Report

A firm opening was followed by almost GBP 20 weaker prices after barely 10 minutes, which lasted through the morning and brought the Jul/Sep19 spread discount to GBP 17. As so often in recent weeks, NY hastened to support in the afternoon and brought London prices back over the barrier of GBP 1800 basis Sep19, which closed at GBP 1798 (+7). Although Côte d'Ivoire had announced the suspension of pre-sales for the coming crop at 1.3 million mt, one wonders how long this decision will last in the light of potential above GBP 1800. And what else? In Accra next week more participants than expected will attend the discussions about a minimum price, which is why the planned date in Abidjan will probably be cancelled...

Jun 07 - Venezuelan cocoa piles up in New York as exporters scramble for cash
U.S. stockpiles of Venezuelan cocoa swelled in May to levels not seen in at least five years, a Reuters analysis showed, as exporters in the crisis-hit country hit by U.S. sanctions scramble to raise cash however they can. Venezuela is in the midst of a years-long economic and humanitarian crisis that has deepened since the United States imposed sanctions on the country's oil industry in January as part of an effort to oust Socialist President Nicolas Maduro in favor of opposition leader Juan Guaido.

Jun 07 - Expect more sugar factory closures in Europe, says Cristal Union
More European sugar factories will close as companies are forced to cut costs after a slump in prices since the end of EU production quotas wiped out profits, French sugar group Cristal Union's chief executive said on Thursday. A surge in sugar output after the European Union abolished production quotas in 2017 prompted a collapse in prices that hit Europe's sugar industry hard, with Cristal Union posting its first even net loss in its last fiscal year.

Jun 06 - Daily Cocoa Futures Market Report

So far it has remained with the "touch of a correction". A firm start, Sept.19 traded at GBP 1785 at its peak, led to hedge sales against origin cover, which pushed the market to a level of GBP 1765. 2 hours after the opening in New York, the managed money fraction showed itself with massive purchases in the market, which led to a re-strengthened closing price. Closing yesterday GBP 1791/ + 13 New York US$ 2405/ + 33.
From Côte d'Ivoire it is unofficially heard that 1,300,000mt from the upcoming 2019/20 harvest have already been sold...should this be confirmed, a strong hedge pressure can no longer be expected and the differentials for raw cocoa remain at a high level.

Jun 04 - Daily Cocoa Futures Market Report

Yesterday, the market moved slightly firmer / high Sep GBP 1803 until noon (with lean net turnover of just 1500 lots) on yesterday's trading day. As announced yesterday in the report, the first profit-taking by the Longs set in, this coupled with slight hedge pressure from the origin caused a slump in prices. The market was well supported by the lows from the previous day (GBP 1786) and the 10-day moving average at GBP 1776.
The Sep 19 recorded a low of GBP 1757, closing at GBP 1762 / GBP -26. The "biggest" losses of a daily movement in 1.5 months. Arrivals in Côte d'Ivoire on 2 June were 2 million mt vs. 1.764 million mt from the previous year (+13.4%).

Jun 04 - Rains seen hampering coffee, cane harvest in Brazil, but will cease soon 
Ample rains in most of the sugar and coffee areas in Brazil this week are expected to bring harvest operations to a halt, but forecasts indicate precipitation will pause at the end of this week and a prolonged dry period will follow. According to Eikon's Agriculture Weather Dashboard, coffee areas in the main producing area in the south of Minas Gerais state will receive around 15 millimeters (0.6 inch) of rain early this week.

Jun 03 - Daily Cocoa Futures Market Report

Until the early afternoon, the London market moved further north. With a daily high of GBP 1812, the high of GBP 1828 on 20.6.2018 was only just missed. Towards the end of the day there were "smaller" profit-taking by day traders and Sept. 19 ended the day with GBP 1788 = minus GBP 8. The reason for the sustained upward trend since 16.5.19 are speculators, as the "Commitment of Traders Report" on 28.5.19 clearly underlines. In the week to 28.5. in New York there was an increase in the net long position of 13,799 lots! Total (Ldn+NY), the net long position amounts to 104,456 lots! In the period 16.5. - 31.5. the prices in London rose by GBP 126, in New York by US$ 148. Slowly the air up there becomes thin and in an "overbought" market profit-taking of the longs should begin...

Jun 03 - ICCO trims 2018/19 world cocoa surplus estimate
The International Cocoa Organization (ICCO) on Friday trimmed its forecast for the size of an expected global cocoa surplus in the 2018/19 season. The inter-governmental body, in a quarterly update, forecast a surplus of 36,000 tonnes in 2018/19 (October/September), down slightly from a previous forecast of 39,000 tonnes.

Jun 03 - Speculators increase net short position in raw sugar - CFTC
Speculators increased their net short position in raw sugar on ICE Futures U.S. in the week to May 28 to its highest level since September, U.S. government data showed on Friday. Speculators reduced their bearish stance on arabica coffee, cut their net short position in cocoa to the smallest in over three months, and trimmed their net short position on cotton futures and options, the data from the U.S. Commodity Futures Trading Commission showed.

Jun 03 - Nicaraguan coffee output to fall 15% in 2019/20 amidst crisis - USDA
Nicaraguan coffee production in 2019/20 is expected to drop 15% from the previous year as the country's coffee sector faces its "worst crisis of the last decade," the U.S. Department of Agriculture (USDA) attache in Managua said in a report on Friday. Such a classification would mean that the current crisis surpasses that of the 2013/2014 season, when an outbreak of fungal diseases slashed the country's coffee output by about a quarter.

Jun 03 - Sugar trader Czarnikow joins ethanol trading venture in Brazil
British sugar trader Czarnikow has entered as a partner in a new ethanol trading company in Brazil, in a joint venture with a group of local investors who control sugar and ethanol plants, according to documents released on Friday by the Brazilian government. CADE, the Brazilian anti-trust watchdog, said it has approved the creation of the ethanol trading venture after a request by Czarnikow and its partners Vale do Tijuco Açúcar e Álcool SA and Canápolis Açúcar e Etanol SA.

May 31 - Intl Pepper Market Report, Week 27-31 May 2019 (IPC)
- This week market showed a rather positive outlook as only Sri Lanka origin reported a decrease. In local market, India black pepper was traded with a 1% increase as opposed to the previous week, averaging at USD 5,002 per Mt. Price of India black pepper in local currency was reported making a slow yet steady increase as it was traded at INR 350 per Kg on Thursday. Indonesia black and white pepper were reported to have recorded an increase by 1% and 2% respectively in this last week before Eid Mubarak Holiday, averaging at USD 2,085 per Mt for black pepper and USD 3,510 per Mt for white pepper. The increase in Indonesia pepper was highly contributed to the strengthening of Indonesian Rupiah against US Dollars. Malaysian black and white pepper this week were traded stable and recorded insignificant movement. Viet Nam black pepper was reported with a slight 1% increase while Viet Nam white pepper remained stable. Sri Lanka black pepper became the only origin to have recorded a slight deficit by 1% as compared with the previous week at an average of USD 3,283 per Mt as the local price experienced deficit to LKR 578.77 per Kg.
- In the international market the increasing trend continued. India FOB price was also reported with a 1% increase as opposed to the previous week. Indonesia black and white pepper was traded with a 1% and 2% increase respectively in the international market, averaging at USD 2,545 per Mt for black pepper and USD 4,141 per Mt for white pepper. Malaysia's FOB prices for black and white pepper were reported at a stable rate. As market in Viet Nam reported tight and offers drying up, FOB prices of Viet Nam black 500 g/l, 550 g/l and white pepper recorded spike by 4%, 4% and 3% respectively as compared with the previous week.

May 31 - Import of Pepper by RUSSIA (IPC)
- Russia, officially the Russian Federation, is a transcontinental country in Eastern Europe and North Asia. Russia is by a considerable margin the largest country in the world by area, covering more than one-eighth of the earth's inhabited land area and the ninth most populous, with about 146.79 million people as of 2019. Russia's economy ranks as the twelfth largest by nominal GDP. In every year, Russia imports more than 8,000 Mt of pepper from pepper producing countries, pepper is used in all kind of Russian preparation, especially in soups and vodka. Therefore, it is hard to imagine a Russian meal without pepper. Many Russians aware that the health benefit of pepper include relief from a host of illness such as coughs, cold, respiratory disorders, indigestion, impotency, muscular strains and dental disease.
- In 2017, Russia reported to have imported a total of 8,204 Mt of pepper which 93% of it comprised of whole pepper while 595 Mt of it ground pepper. The average pepper import by Russia in 2017 was reported at 684 Mt per month with the highest quantity recorded in June with 1,035 Mt. The total expenditure of pepper imports by Russia amounted to USD 36.5 Million, recording an average price of the total pepper imported by Russia at USD 4,271 per Mt for whole pepper and USD 6,687 per Mt for ground pepper.
- 2018 saw pepper import by Russia slightly decreased by 2% as compared to previous year totalling at 8,047 Mt which comprised of 7,353 Mt of whole pepper and 695 Mt of ground pepper. The average pepper import by Russia was reported at 671 Mt per month which peaked in May 2018 with 1,048 Mt. In accordance with decreasing in terms of quantity, the pepper imports by Russia also decreased by 28% in terms of value which amounted to USD 26.3 Million. The average prices of the total pepper imported by Russia was reported to be at USD 3,051 per Mt for whole pepper and USD 5,548 per Mt for ground pepper which meant a loss a 29% and 17% respectively.
- At the beginning of 2019, pepper import by Russia as of February 2019 showed an increasing trend by recording a spike of 39% as compared with the same period in 2018, totalling 878 Mt which comprised of 763 Mt of whole pepper and 115 Mt of ground pepper. The total expenditure of pepper imports by Russia as of February 2019 decreased by 6% as compared to previous year in the same period, totalling USD 2.6 Million. Most of pepper imported by Russia both whole and ground as of February 2019 was reported to come from Viet Nam with 441 Mt (an increase of 8% compared with the same period in 2018), Brazil with 168 Mt (an increase of 83%), India with 47 Mt (an increase of 9%), Poland with 38 Mt (an increase of 56%) and Indonesia with 36 Mt (a decrease of 185%). The decrease of import from Indonesia was the result of Indonesia's low stock.

May 31 - Daily Cocoa Futures Market Report

The slight upward movement of the previous evening continued yesterday morning as prices again tested the psychological barrier at GBP 1800, especially in the nearby months. The Sep 19 also looked bravely over the line and marked its daily high of GBP 1801, but then retreated into safe territory just below to close with GBP +7 at GBP 1797. Despite new Chinese punitive tariffs on US imports or Merkel's acclaimed speech to Harvard graduates, the US$ continues its period of strength with the British Pound remaining comparatively weak. Should a correction become apparent today before the weekend, it should be used to accompany the market, depending on the cover. We wish you a great weekend.

May 31 - Brazil's Copersucar sees sugar trade flow reaching equilibrium in 2nd half
Brazil's Copersucar, the world's largest sugar merchant, expects global trade flow of the sweetener to reach equilibrium between supply and demand in the second half of 2019, which could lead to a price recovery, a top company official said on Thursday. Lower sugar production in some of the main producers, such as Brazil and Thailand, will erase a surplus of 9.9 million tonnes seen in the end of the 2017/18 global crop, whose season lasts from October to September, according to Copersucar's strategy director, Tomas Caetano Manzano.

May 31 - Brazil's coffee crop 22% harvested, ahead of average for period – report
Harvest of Brazil's 2019 coffee crop reached 22% of the area by May 28, ahead of the pace seen at this time last year and also faster than the average for the last five years, consultancy Safras & Mercado said on Thursday. Farmers had collected 18% of the coffee late in May last year. The five-year average for this time is 19%, said Safras in a report.

May 30 - Daily Cocoa Futures Market Report