Cocoa prices, which reached a maximum of ₹320 a kg for wet cocoa beans and ₹960 a kg for dry beans for a brief period in the first week of May, are coming down now.
On May 6, the Central Arecanut and Cocoa Marketing and Processing Cooperative (Campco) Ltd offered ₹250-275 a kg for wet cocoa beans and ₹800-850 a kg for dry cocoa beans.
A Kishore Kumar Kodgi, President of Campco, told businessline that cocoa prices have declined in the international market recently. Considering the changes in international price trends Campco has decided to reduce its procurement price, he said.
Stating that the cocoa market is getting stabilised now, he said the cooperative is striking a balance to ensure remunerative prices to its grower-members.
US cocoa futures
July US cocoa futures were trading at $8,028 a tonne on May 3. Cocoa futures had touched a maximum of $12,261 a tonne on April 19.
May London cocoa futures were trading at £7,461 a tonne on May 3. It had reached a maximum of £10,265 a tonne on April 19.
Keeping in tune with the international prices, Campco’s procurement price had touched ₹310-320 a kg for wet cocoa beans and ₹950-960 a kg for dry cocoa beans for brief period of time from April 27. However, prices came down to ₹295-305 a kg for wet cocoa beans and ₹850-900 a kg for dry cocoa beans on May 2.
Campco’s procurement price was at ₹275-290 a kg for wet cocoa beans and ₹850-880 a kg for dry cocoa beans on May 4.
Largest deficit in 50 years
To a query on the arrivals, Kodgi said the cooperative is getting sufficient quantieis of wet cocoa beans from its grower-members from cocoa-growing regions such as Puttur, Sullia and Belthangady taluks in Karnataka, and Kasaragod in Kerala.
In its Commodities Daily dated May 2, ING Think said cocoa prices during that week traded to their lowest level since March despite little change fundamentally in the cocoa market.
The global cocoa market is still expecting not only a third consecutive deficit in the 2023-24 season but also the largest deficit in at least 50 years, it said. However, falling liquidity has led to increased volatility in the market, ING Think said, adding, an increase in initial margins has made it more expensive to trade.