The latest Cocoa Market report put out by the International Cocoa Organization Council (ICCO) for the month of December 2022 has highlighted a significant increase in crop output for the two main cocoa producers Ghana and Côte d’Ivoire. As of 8 January 2023, arrivals of cocoa beans at Côte d’Ivoire‘s ports of exports were observed at 1.346 million tonnes, a 11.6% increase year-on-year.
Carriers’ strike action at the port of San Pedro in November 2022 contributed to a reduction in the exports of cocoa beans during that period. In Ghana, purchases of graded and sealed cocoa beans for the 2022/23 crop year reached 350,000 tonnes; representing a 76% increase compared with 199,000 tonnes purchased at the period of the previous season.
In spite of an increased yield, both countries have faced key challenges related to the cost of living crisis, and inflated costs of fertilisers.
In addition, although arrivals and purchases from top producers reflect an amply supply of cocoa, the ICCO have expressed concerns over the possibility of dry weather having a poor effect on the April to September mid-crop.
In December 2022, prices of front-month cocoa futures contract averaged US$2514 per tonne and averaged between $2392 and $2635 per tonne in London. Compared with December 2021, prices were lower with the average price of $2185 per tonne.
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