In July, the major reporting regions of the world released Q2 2023 grind results, that is the amount of cocoa beans processed and converted into semi-finished cocoa products (liquor, butter, and powder).
The headline number showed that grinds were weak across the board with a few notable exceptions. More specifically, Western European grind was down 5.7 percent, Asia was down 6.5 percent, and North America was down a whopping 11.6 percent. The disappointing results brought all three major reporting regions into negative territory on a season-to-date basis with Europe down 2.3 percent, Asia down 1 percent, and North America declining 8 percent. That leaves the market only one more quarter to report (Q3) to complete the seasonal 2022/23 grind result that spans October to September.
The two exceptions to the trend were Brazil and GEPEX (Ivory Coast), both of which managed to show decent gains during the quarter, helping to offset a decline in most other regions. Brazilian grinders reported an impressive 62,426 MT of beans ground and West African cocoa processors were up 2.8 percent. However, despite the gains in these two regions, they are relatively small compared to many of the other reporting regions.
The full version of this commentary appeared on our IQ platform Jul. 25, 2023. Further information, statistics, and pricing for the cocoa market are available to IQ subscribers. Learn more about becoming a subscriber.
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