New York terminal squeeze escalates fight over LID

Commodity futures markets often exhibit what is known as carry structure or contango, which is the upward stairstep shape associated with the string of progressively later-dated futures contracts. Higher premiums are a function of the greater uncertainty that comes with time plus additional logistics, [...]

Poor precipitation in July & August could impact new main crop

The 2020/21 main crops will begin in October and the cacao fruit needs enough moisture for proper pod growth and bean development. The summer months of June through August mark the tail end of the 2019/20 midcrop, and trees begin forming pods for the [...]

Colombians look to form global cannabis hub

Some investors see great potential for cannabis production and processing in Colombia despite a few regulatory and climactic hurdles. For starters, the equator runs through Colombia, meaning warm temperatures, tropical rains, and long, sunny days, conditions that are perfect for growing cannabis plants, including [...]

Cumulative cocoa arrivals continue to lag

Ivory Coast exporters estimated cocoa bean port arrivals down 6.5 percent YOY at around 1.85 MMT from October through May. This is a shortfall of nearly 100,000 MT from the previous season. Ghana Cocobod purchases have also fallen behind last year’s pace, adding to [...]

Ivory Coast & Ghana cocoa figures estimated lower at end of April

Amid largely bearish updates on grind, potentially lower grind growth in 2019/20 could be at least partly matched by smaller West African cocoa crops. From October through April, we estimate cocoa arrivals could be down around 3 percent YOY from arrivals a year prior [...]

Ivory Coast, Ghana cocoa arrivals flat year on year

Light rains in West Africa should help tree condition, soil moisture, and pod setting and filling. Reports show atypically dry conditions overall, which is expected to further pressure the Ivorian midcrop, which could fall by an estimated 20 percent to 30 percent from the [...]

Could more African origins demand cocoa premium?

Speaking at an African investment forum, Ghana’s president made an argument for Nigeria and Cameroon to join Ivory Coast and Ghana’s cocoa market cooperation efforts. President Akufo-Addo acknowledged some “structural issues,” like Nigeria’s lack of a cocoa marketing mechanism, per The Africa Report. Both [...]

Can Ivory Coast & Ghana limit their cocoa output?

Ivory Coast raised its farmgate price 10 percent, while Ghana raised its farmgate price 8.4 percent. The market can read the announcements as a signal that the two countries are serious about coordination and cooperation. The question is whether they will have the resolve [...]

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