COPAL COCOA Info - Alliance of Cocoa Producing …. 492.doc · Web viewMay 2012 2339 2321 -51 2343 2339 6 Jul 2012 2303 2261 -58 2303 2220 12,046 Sep 2012 2301 2271 -57 2301 2232

INSIDE THIS ISSE: ICCO DAILY COCOA PRICES LONDON (LIFFE) FUTURES

MARKET UPDATE NEW YORK (ICE) FUTURES

MARKET UPDATE FROM THE NEWS MEDIA

o Workshop on promotion of consumption of chocolate and cocoa products, Abidjan, Cote d’Ivoire, 15th – 17th May, 2012.

COPAL COCOACOPAL COCOA InfoInfo A Weekly Newsletter of Cocoa Producers' Alliance

Health and Nutrition

Production and Quality Government Okays RM12.54 Million For Cocoa

Replanting Country-Wide

The Market Ivorian cocoa prices rise on quality, demand-

farmers Marex Spectron says cocoa delivery may be

‘Above Expectations’ Europe cash cocoa: Economic concerns weigh on

butter demand

Processing and Manufacturing Cameroon cocoa grinder purchases hit 28,033 T

Business & Economy Ivory Coast cocoa premium is seen at as much as

85 Pounds

Labour Issues

Environmental Issue El Nino could cut global 2012/13 cocoa output:

ICCO Rainforest Alliance honors Global Environment

Facility

Research & Development

Promotion & Consumption

Do your health a favour, drink Cocoa everyday

‘It’s nature’s miracle food’UP-COMING EVENTSUP-COMING EVENTS IN THISIN THIS

Issue No. 492 14th – 18th May 2012

Others

In the News (from Newspapers worldwide)

ICCO Daily Cocoa PricesICCO Daily Price

(SDR/tonne)ICCO Daily price

($US/tonne)London futures

(£/tonne)New York futures

($US/tonne)

14th May 1515.16 2324.47 1494.67 2242.67

15th May 1527.52 2341.87 1500.33 2282.00

16th May 1551.81 2366.13 1526.67 2302.33

17th May 1521.05 2317.62 1513.33 2243.33

18th May 1540.39 2348.33 1532.67 2279.33

Average 1531.00 2340.00 1514.00 2270.00

COCOA PRODUCERS’ ALLIANCE, NATIONAL ASSEMBLY COMPLEX TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234(0)1-263-5574 FAX: +234(0)1-263-5684

Email: [email protected] Website: www.copal-cpa.org2

mailto:[email protected]

International Financial Futures and Options Exchange (LIFFE)London Futures Market – Summary of Trading Activities

(£ per tone)

Monday 14th May 2012 Month Opening Trans Settle Change High Low Volume

May 2012 1530 1526 -24 1538S 1520S 9,521Jul 2012 1520 1504 -35 1528S 1502 10,321Sep 2012 1514 1497 -33 1520S 1495S 2,873Dec 2012 1501 1483 -34 1507S 1480S 1,433Mar 2013 1481 1460 -33 1484 1459 950May 2013 1479 1458 -33 1479S 1458S 499Jul 2013 1485 1463 -32 1485 1465S 439

Sep 2013 1480 1467 -30 1480S 1475 22Dec 2013 1490 1475 -23 1494 1480 233Dec 2014 1508 1485 -19 1508S 1508S 5

Average/Totals 1482 26,296

Tuesday 15th May 2012 Month Opening Trans Settle Change High Low Volume

May 2012 1520 1548 22 1553S 1518S 2,484Jul 2012 1496 1509 5 1518 1494 5,172Sep 2012 1489 1502 5 1510S 1488S 1,882Dec 2012 1478 1490 7 1496S 1474 1,114Mar 2013 1453 1468 8 1475S 1453S 645May 2013 1453 1467 9 1474S 1453 211Jul 2013 1460 1471 8 1467 1460S 16

Sep 2013 1475 1475 8 1475 1475 2Dec 2013 1480 1483 8 1481 1480S 25Mar 2014 1493 8 0


Wednesday 16th May 2012 Month Opening Trans Settle Change High Low Volume

May 2012 1560 1550 2 1588 1515 573Jul 2012 1505 1541 32 1545S 1494S 5,640Sep 2012 1495 1527 25 1531S 1491 3,100Dec 2012 1483 1512 22 1517S 1478 1,770Mar 2013 1461 1490 22 1495 1461S 876May 2013 1461 1488 21 1493S 1457S 372Jul 2013 1465 1492 21 1493S 1465 79

Sep 2013 1482 1496 21 1500 1482S 21Dec 2013 1484 1507 24 1485S 1478 34Mar 2014 1517 24 0


ALLIANCE OF COCOA PRODUCING COUNTRIES, NATIONAL ASSEMBLY COMPLEX, TAFAWA BALEWA SQUARE, P.O. BOX 1718, LAGOS, NIGERIA. TEL: +234-70-9814-1735; +234-70-

9814-1736; FAX: +234-1-290-4262 Email: [email protected] Website: www.copal-cpa.org

3

http://www.nybot.com/reports/dmrs/etsDMRs/dmrFutures.asp?dmrMonth=04&dmrDay=11&dmrYear=2007&commodityID=1&commodityType=future

http://www.copal-cpa.org/







Thursday 17th May 2012 Month Opening Trans Settle Change High Low Volume

Jul 2012 1537 1528 -13 1550 1525S 4,413Sep 2012 1514 1513 -14 1531S 1508S 2,784Dec 2012 1514 1499 -13 1517S 1494S 1,541Mar 2013 1486 1481 -9 1499S 1477S 1,475May 2013 1488 1480 -8 1497S 1475S 452Jul 2013 1495 1486 -6 1495S 1483S 82

Sep 2013 1492 1491 -5 1496 1490S 52Dec 2013 1502 1500 -7 1502 1502 3Mar 2014 1513 -4 0May 2014 1522 0


Friday 18th May 2012 Month Opening Trans Settle Change High Low Volume

May 2012 N/A N/A N/A N/A N/AJul 2012 1528 1551 23 1554 1523S 4,554Sep 2012 1511 1534 21 1537S 1509S 2,058Dec 2012 1498 1513 14 1519 1495 1,529Mar 2013 1480 1493 12 1502S 1475 2,288May 2013 1478 1493 13 1501 1475S 379Jul 2013 1486 1498 12 1505 1486S 122

Sep 2013 1507 1502 11 1507 1507 10Dec 2013 1502 1508 8 1502S 1502S 5Mar 2014 1519 1520 7 1519S 1517S 10May 2014 1529 7 0


Average for the week 1514 1992 1992



4









New York Board of Trade(New York Futures Market – Summary of Trading Activities)

(US$ per tone)

Monday 14th May 2012 Month Open Price Change High Low Volume

May 2012 2339 2321 -51 2343 2339 6Jul 2012 2303 2261 -58 2303 2220 12,046Sep 2012 2301 2271 -57 2301 2232 4,532Dec 2012 2300 2280 -57 2309 2250 2,267Mar 2013 2301 2283 -57 2313 2276 735May 2013 2307 2289 -57 2311 2264 83Jul 2013 2316 2300 -56 2320 2275 75

Sep 2013 2326 2311 -56 2326 2287 12Dec 2013 2300 2322 -56 2300 2300 20Mar 2014 0 2334 -56 0 0 15

Average/Totals 2297 19791

Tuesday 15th May 2012 Month Open Price Change High Low Volume

May 2012 0 2278 -43 0 0 0Jul 2012 2241 2268 7 2282 2234 9,132Sep 2012 2252 2281 10 2292 2247 2,152Dec 2012 2260 2291 11 2303 2260 1,940Mar 2013 2267 2294 11 2303 2267 514May 2013 2288 2300 11 2310 2287 537Jul 2013 2296 2310 10 2322 2296 196

Sep 2013 2325 2320 9 2332 2321 6Dec 2013 0 2331 9 0 0 0Mar 2014 0 2343 9 0 0 0


Wednesday 16th May 2012 Month Open Price Change High Low Volume

May 2012 0 0 0 0 0 0Jul 2012 2239 2292 24 2299 2227 8,425Sep 2012 2245 2304 23 2309 2240 3,142Dec 2012 2274 2313 22 2318 2253 2,110Mar 2013 2277 2318 24 2320 2259 746May 2013 2300 2329 29 2330 2269 570Jul 2013 2310 2340 30 2339 2290 161

Sep 2013 2319 2348 28 2349 2315 32Dec 2013 0 2359 28 0 0 2Mar 2014 0 2371 28 0 0 1




5









Thursday 17th May 2012 Month Open Price Change High Low Volume

May 2012 0 0 0 0 0 0Jul 2012 2282 2224 -68 2289 2220 13,130Sep 2012 2301 2239 -65 2301 2235 4,662Dec 2012 2307 2251 -62 2307 2247 4,062Mar 2013 2312 2261 -57 2312 2258 2,404May 2013 2325 2276 -53 2325 2273 1,397Jul 2013 2311 2289 -51 2311 2287 320

Sep 2013 2316 2299 -49 2316 2297 71Dec 2013 0 2309 -50 0 0 4Mar 2014 0 2318 -53 0 0 1


Friday 18th May 2012 Month Open Price Change High Low Volume

Jul 2012 2222 2273 49 2286 2221 9,356Sep 2012 2235 2285 46 2298 2235 2,841Dec 2012 2250 2293 42 2305 2248 1,771Mar 2013 2259 2298 37 2311 2257 1,385May 2013 2274 2310 34 2320 2272 314Jul 2013 2284 2319 30 2330 2284 207

Sep 2013 2325 2328 29 2329 2325 11Dec 2013 0 2338 29 0 0 0Mar 2014 0 2346 28 0 0 0


Average for the week 2310 3177 3177



6










News

Government Okays RM12.54 Million For Cocoa Replanting Country-WideBernamaBy SANDAKAN, May 15 , 2012(Bernama) -- The Government has sanctioned RM12.54 million to plant high-yield cocoa trees in 1,567 hectares nationwide, Cocoa Board of Directors Chairman Datuk Siringan Gubat said today.

Of the total hectarage, 750 hectares are identified in Sabah, with 300 hectares in Ranau district, 200 hectares in Tenom), 150 hectares (north and west coasts) and 100 hectares (east coast), he said.

"This replanting programme is the board's effort to increase cocoa-planted areas in the country and to reduce cocoa imports," he said at the opening of a basic cocoa technology course for new cocoa growers by Kuamut assemblyman Masiung Banah.

Siringan said currently cocoa-grown areas in the country were very low at only 20,500 hectares, with cocoa production at 4,600 tonnes. He said the total output was inadequate to meet the demand of cocoa- grinding factories which require 300,000 tonnes."The country needs to increase cocoa output in efforts to significantly reduce cocoa imports," he said.

Seventy-two new cocoa growers are attending the three-day course which started yesterday.

Under the replanting programme, the participants will receive RM8,000 replanting grant for a hectare per year.

Ivorian cocoa prices rise on quality, demand-farmersReuters AfricaBy Loucoumane CoulibalyMay 15, 2012 (Reuters) - Farmgate cocoa prices in Ivory Coast's main growing regions rose last week, supported by improved quality of beans and firm demand from buyers for export and local grinding, farmers and buyers said on Tuesday.

The mid-crop in the world's top cocoa producer is marketed from April to September, but a five-month dry spell that carried into March delayed the start of harvesting. Farmers said the first beans of the crop are now starting to leave the bush.

The International Cocoa Organisation said last week that Ivory Coast's total output for the 2011-2012 season is seen at 1.35 million tonnes, down from last year's record of around 1.5 million tonnes, due to weather.



7

NEWS

Health and Nutrition

Production & Quality

The Market



In the western region of Duekoue, farmers said the average price rose last week to between 575 CFA francs ($1.13) per kg and 600 CFA/kg, from 500-550 CFA/kg the previous week as improved bean size triggered strong demand from buyers."Prices are going up because the quality is improving," said Amara Kone who farms near Duekoue.

"Demand is strong and we are seeing bean sizes of about 115 beans per 100 grams. Three weeks ago they were still between 120 and 130 beans per 100 grams," Kone said in reference to export requirement which stipulates that anything above 115 beans per 100 grams are not eligible for exports.

In the centre-western region of Daloa, which produces about a quarter of Ivory Coast's national output, farmers said farmgate prices rose to 575-625 CFA/kg, from 550-600 CFA/kg.

In the western region of Gagnoa, farmers said the average price was around 600 CFA/kg, from 550-575 CFA/kg. "Because there was not enough cocoa in the past months, buyers are scrambling to get their hands on as much cocoa as they can and are putting farmers under pressure," said local farmer and cooperative manager Francois Badiel.

In the western region of Soubre, at the heart of the Ivorian cocoa belt, farmers said the average price was steady about 650 CFA/kg. ($1 = 510.9490 CFA francs)

Marex Spectron says cocoa delivery may be ‘Above Expectations’BloombergBy Isis Almeida May 17, 2012 Cocoa delivered against the expired May futures contract on the NYSE Liffe exchange in London is estimated at about 41,000 metric tons, according to futures and options broker Marex Spectron Group.

That would be “above expectations,” Eric Sivry, the London-based head of the agriculture options brokerage at the company, said in a report e-mailed today.

Cocoa deliveries against the March contract this year totaled 26,120 tons, exchange data show. Last year, the delivery of the May contract was 21,870 tons, the data show. The May 2012 futures expired yesterday.

Europe cash cocoa: Economic concerns weigh on butter demandReutersMay 18, 2012 AMSTERDAM, May 18 (Reuters) - Demand for cocoa butter, a key ingredient in chocolate, was slow in the past week with industry attention focused on the euro zone crisis and its impact on consumption, traders said.

Trade slowed further towards the end of the week during Thursday's Ascension Day public holiday in most Western European countries.

Price ratios for cocoa butter in the European cash cocoa market were unchanged from last week at 1.05 times London bean contracts.

"We have seen some activity, mostly from traders," one trader said. "The industry is reluctant to buy more. They are worried about the outcome of the economic crisis in Europe."

"The industry is trying to assess how much they will need, they don't know what will be the impact of the crisis on chocolate consumption," another trader said.

Buyers are putting off orders for Christmas due to financial market uncertainty.

Price differentials for cocoa beans in the European cash market were little changed as the market focused more on the main crop in Western Africa's key growing regions.



8



"I think that the cocoa market held up well compared to metals and grains, for example," one bean trader said.

"The main focus now is the main crop and the crisis in Europe."

Ivory Coast differentials were about 60 pounds ($94.88) over London nearby cocoa futures contracts, compared with 55 last week. Ghana differentials were 90 pounds over London nearby cocoa futures, 10 pounds lower than last week.

Valid cocoa stocks in NYSE Liffe's nominated warehouses rose to 64,260 tonnes as of May 14, up from 62,720 tonnes on April 30, exchange data showed.

Possible El Nino weather conditions later this year could exacerbate a potential global cocoa deficit in the coming 2012/13 season, causing prices to climb, the International Cocoa Organization (ICCO) said on Thursday.

Cameroon cocoa grinder purchases hit 28,033 TReuters AfricaBy Tansa Musa May 18, 2012 YAOUNDE May 18 (Reuters) - Cameroon's sole cocoa grinder, Sic-Cacaos, bought 28,033 tonnes of beans by the end of April since the start of the 2011/12 season in August, according to figures issued on Friday by the National Cocoa and Coffee Board (NCCB).

The figure compares with 26,287 tonnes bought in the first nine months of the season last year.

Purchases in April were down to 98 tonnes from 269 tonnes the previous month and 255 tonnes during the same month last year.

Sic-Cacaos, based in Cameroon's economic capital and main port city Douala, is a subsidiary of Swiss chocolate firm Barry Callebaut and supplies cocoa products to the central African region.

It has a grinding capacity of 30,000 tonnes per year, but last year purchased a record 33,894 tonnes, putting excess tonnage in storage.

Ivory Coast cocoa premium is seen at as much as 85 PoundsBloombergBy Isis Almeida @ [email protected] 18, 2012 Ivory Coast cocoa from the season starting in October was at a premium of as much as 85 pounds ($134) a metric ton on speculation shipments may be delayed.

The premium for Ivorian beans in Europe to the price on the NYSE Liffe exchange in London ranged from 45 pounds, depending on the shipment period and on the quality agreed, according to three traders with direct knowledge of the sales, who declined to be identified because they aren’t authorized to speak to the media. A higher premium was being charged for shipments in the fourth quarter, the traders said.

There are concerns the implementation of a new selling system in Ivory Coast will lead to “substantial” delays in exports, Jonathan Parkman, co-head of agriculture at broker Marex Spectron Group in London, said last month.



9

Business & Economy

Processing & Manufacturing



Ivory Coast, the biggest grower, plans to sell 70 percent of its 2012-13 crop before the harvest starts as part of wider industry reforms. The so-called forward sales started on Jan. 31 even as some details of the reform still need to be finalized.

An agreement with cocoa exporters over transportation and handling fees will be reached by Sept. 15, Agriculture Minister Mamadou Sangafowa Coulibaly said this week.

Cocoa from the current crop in Ivory Coast is not trading in Europe as the main crop has ended, the traders said. The smaller of two annual harvests, known as the mid-crop, is “off to a slow start,” according to Laurent Pipitone, director of the economic and statistics division at the International Cocoa Organization in London.

Beans from the current crop in Ghana, the second-largest producer, were trading in Europe at a premium of 75 pounds to 85 pounds a ton, unchanged from last week, the traders said. Cocoa from the new crop was at a premium of 90 pounds to 100 pounds a ton, from 90 pounds to 95 pounds a ton last week.

Premiums for the new crop in Ghana may be supported by potential export delays in Ivory Coast, the traders said.

Cocoa for July delivery rose 1.6 percent to 1,552 pounds a ton by 3:34 p.m. in London.

El Nino could cut global 2012/13 cocoa output: ICCONewsDay 2012-05-17 LONDON - Possible El Nino weather conditions later this year could exacerbate a potential global cocoa deficit in the coming 2012/13 season, causing prices to climb, the International Cocoa Organization (ICCO) said.

"We know that when we have El Nino conditions it's likely that this will impact negatively on world cocoa production. We would have less production and this would have an impact on price," ICCO statistician Laurent Pipitone told Reuters.

"If we are in a period when we have already a deficit, and in addition we have this factor that adds to the deficit, the impact on price would be even higher," he added.

El Nino - the warming of the Pacific Ocean leading to a shift in weather patterns - caused a drop of 2.4 percent in world cocoa output on average when it occurred over the last 60 years, according to ICCO data.

Such a drop equates to around 100,000 tonnes of cocoa at current production levels, Pipitone said.The ICCO has predicted a deficit of 71,000 tonnes in 2011/12 (October-September), after a record surplus the previous year, when ideal weather boosted West African output. West Africa produces around two thirds of the world's cocoa, led by Ivory Coast.

ICE cocoa futures prices hit a 32-year high in March last year after a disputed presidential election saw a temporary ban on cocoa exports in Ivory Coast, but prices have since fallen by around 40 percent.

Pipitone said that crop prospects for the tail of West Africa's 2012/13 October-March main crop along with the 2012/13 April-September mid crop was most at risk from potential El Nino weather conditions later this year.



10

Labour Issues

Environmental Issues



The ICCO bases its expectations on whether there will be El Nino conditions on predictions from The National Oceanic and Atmospheric Administration (NOAA) and The Australian Government Bureau of Meteorology.

"A lot of the dynamical models are leaning towards a weaker El Nino developing," said Mike Halpert, deputy director of the Climate Prediction Centre, an office under the NOAA.

"But given that it is still a fairly long lead forecast we're not likely to say anything more definitive on whether we'll see El Nino develop later this year until June at the earliest."

Five out of seven of the Australian Government Bureau of Meteorology's forecast models indicate El Nino conditions from September 2012, according the Bureau's website.

SOFT SPOTS

The effect of El Nino weather events on the cocoa crop differs according to the duration, severity and time in the crop cycle at which the weather arrives.Such weather typically means drier conditions in Malaysia, Papua New Guinea, the Philippines and Indonesia, the third's largest cocoa producer, where the harvest has fallen 2.4 percent on average during past El Nino periods.

West Africa also sees lower rainfall, with average drops of 2.03 percent and 1.72 percent in the world's first and second largest producers, Ivory Coast and Ghana.

But the worst affected country is Ecuador, where the cocoa harvest shrinks 6 percent on average during El Nino, according to ICCO data. Though it accounts for just 4.5 percent of world cocoa, Ecuador is the world's fastest growing producer, and its output is expected to grow to 175,000 tonnes in 2011/12.

Pipitone said Ecuador's production was growing at a rate of around 10 percent per year.

Ecuador supplies about half of the world's fine cocoa beans, favoured for high-quality chocolate in Belgium, Switzerland, Italy and France, meaning El Nino weather could affect luxury chocolate brands in particular.

Fine cocoa beans from different countries each have a particular flavour, Pipitone said, meaning luxury brands cannot easily switch from one bean to another in the case of scarcity. "When there is a reduction of production in Ecuador it has a great impact on the finer flavour market," Pipitone said.

Rainforest Alliance honors Global Environment FacilityWorldStageBy Press ReleaseMay 17, 2012

Forest

The Global Environment Facility (GEF) tonight was presented with the 2012 Sustainable Standard-Setter award by the Rainforest Alliance at its 25th annual gala for work in supporting the sustainable cultivation of cocoa in rainforest regions. The gala honors individuals and organizations from the public and private sectors whose work in the environment protection and conservation proved great impact to communities around the world. GEF CEO and Chairperson Monique Barbut received the award on behalf of The Global Environment

Facility.

The award recognizes the partnership between the Rainforest Alliance and the GEF to bring 10% of the world’s cocoa supply – some 1.85 million acres – into more sustainable systems of production that will help conserve the extraordinary biodiversity of tropical regions. The GEF has supported the Greening of the Cocoa



11



project with a $5 million grant and cofinancing of $15 million, funds that will help improve farming practices to conserve the environment, increase farmers’ income, benefit families and communities, and provide long-term sustainability for the cocoa industry. The program involves cocoa cultivation in ten countries: Brazil, Côte d’Ivoire, Dominican Republic, Ecuador, Ghana, Indonesia, Madagascar, Nigeria, Papua New Guinea, and Peru. The aim is to develop and apply sustainable agriculture standards and promote business production principles that will protect the environment while allowing local farmers and communities to benefit from viable business models.

“The GEF wants to engage the private sector to become more active at the local and international levels, and facilitate the transfer of technology for the valorization of resources” said Monique Barbut.

The Rainforest Alliance was established 25 years ago with the goal of conserving biodiversity and promoting sustainable livelihoods by providing farmers, forest managers and tourism businesses with the tools to realize greater economic benefits while conserving local biodiversity and ecosystems.

“Our anniversary gala awards ceremony provides us with the opportunity to recognize companies that have worked hard alongside us to promote environmental and social responsibility” said Tensie Whelan, president of the Rainforest Alliance.



12

Research & Development

Promotion & Consumption

Others



Documents

COPAL COCOA Info - Alliance of Cocoa Producing …. 492.doc · Web viewMay 2012 2339 2321 -51 2343 2339 6 Jul 2012 2303 2261 -58 2303 2220 12,046 Sep 2012 2301 2271 -57 2301 2232