Ghana Cocoa Board See A Decline In Cocoa Purchase

Ghana Cocoa Board announced an all out acquisition of 742,725 tons for the 2019/2020 cocoa season as at June 4, 2020, This was revealed by a new data from the International Cocoa Organization (ICCO).

This mirrors a decrease of 4.3 rate drop from the volumes purchased over a similar time of the past season.

The decrease in volumes bought by COCOBOD comes when the International cocoa market had kept on embracing a shortening position in the New York market and a contango position in the London market, as at the middle of July, 2020.

For this reason, COCOBOD expects cocoa yield of around 900,000 tons in the 2020/2021 season, up 5.8 percent from the figure for 2019/2020.

The normal increment is taking into account progressing activities to build cocoa ranch profitability which are relied upon to start receiving significant benefits soon.

The Ghana Cocoa Board now intends to raise a US$1.3bn coordinated credit to support cocoa purchases during 2020 and 2021 from a consortium of banks and financial institutions, with the legislature of Ghana as a guarantor.

The loan is being contracted at a yearly enthusiasm of one-month Libor in addition to 1.75 percent, a dedication charge of 0.62 percent every year and a forthright level expense of 1.25 percent.

Meanwhile, in Côte d’Ivoire, as at August 3, 2020, aggregate cocoa arrivals, since the 2019/20 season began, were set up at 2.043 million tons, somewhere around 5.4 percent from the 2.160 million tons reached during a similar period in the past season.

As per the ICCO, on the interest side, a bearish position was found in the second quarter of 2020 grindings figures.

In fact, the European Cocoa Association (ECA) delivered information demonstrating a year on year abatement of 8.9 percent to 314,108 tons in grindings while the Cocoa Association of Asia (CAA) declared a decay of just about 6 percent to 202,674 tons year on year.