Fluctuations in the international cocoa market are impacting the domestic market too. While international cocoa prices remain volatile, the Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) seems to be focussing on stabilising the market.
On Monday, Campco offered a maximum procurement price of ₹220 a kg for wet cocoa beans and ₹700 a kg for dry cocoa beans. It bought wet cocoa beans at ₹200-230 a kg and dry cocoa beans at ₹700-730 a kg on May 13.
July US cocoa futures closed at $7,282 a tonne on May 17. In the past week, US cocoa features touched a maximum of $9,066 a tonne on May 15. July London cocoa futures closed at £6,126 a tonne on May 17. London cocoa futures had opened at a high of £7,687 a tonne on May 13.
A Kishore Kumar Kodgi, President of Campco, told businessline that international cocoa prices have remained volatile last week.
Striving for market stability
While some private traders refrained from purchasing from domestic growers, Campco has remained committed to supporting them by procuring cocoa at significant quantities, he said.
Concurring with him, BV Sathyanarayana, Managing Director of Campco, said Campco is striving to maintain market stability by holding prices steady, despite some private players offering lower prices.
With the procurement season nearing its close in the coming days, Campco aims to continue its efforts to support cocoa growers and stabilise prices in the domestic market, he said.
Referring to the volatile price shifts in international cocoa futures, Trading Economics website said the lack of liquidity and low open interest have magnified price movements in cocoa, meaning that even small updates to weather forecasts in key producing regions in West Africa or hints of demand decline can trigger significant price swings.
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Traders were closely monitoring crop conditions in Ivory Coast and Ghana, following poor harvests that have led to the world facing a third consecutive annual deficit, it said.