For the first two months of the 2018/19 season, arrivals of main-crop cocoa beans have been reported well above last year’s levels. Total arrivals in October and November are estimated to have surpassed 675 million metric tons (MMT) of beans. Depending on whose estimates you use, this means that arrivals are up at least 30 or even more than 40 percent from arrivals a year prior.
In the first week of December, arrivals have been estimated at more than 75,000 MT, up some 4 percent year on year. This adds to the excess supply over the initial market plans of the CCC, which has reportedly had to sell another 100,000 metric tons (MT) to 200,000 MT of beans.
Looking at the players in the Ivorian market, there are questions as to the financial wherewithal of local traders. According to other reports, the CCC has sought to stave off some early trader defaults by revoking the licenses to two exporters.
Banks have been wary of lending to exporters after the liquidation of trader and processor SAF Cacao. Adding to the atmosphere of uncertainty for the industry, the first winning bidder on that company’s assets was unable to meet its payment schedule and a second bidder has now been selected.
Ivory Coast cumulative cocoa arrivals, seasonal comparison
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