(Bloomberg) – Cocoa fell in New York on speculation slowing economies will continue to dent chocolate consumption just as the outlook for crops improves in West Africa, the main growing region. Sugar declined.
The global chocolate market grew 1.1 percent in volume from September through November, Barry Callebaut AG, the world’s biggest maker of bulk chocolate and a supplier to Nestle SA (NESN), said today in an earnings presentation. While Western Europe’s market didn’t grow, the U.S. had a 1 percent contraction, the company said.
Rainfall of about 5 millimeters (0.2 inch) is forecast for most of top grower Ivory Coast’s coastal areas through Jan. 30, data on the U.S. National Oceanic and Atmospheric Administration’s website showed.
“Weather in West Africa remains positive for near-term supply while economic growth in Europe should continue to limit enthusiasm on the demand side,” Jeremy Friesen, a commodities strategist at Societe Generale SA, said in a report e-mailed today. “Cocoa should remain under-weighted against the broader commodity index through January.”
Cocoa for March delivery fell 0.7 percent to $2,255 a ton by 8:21 a.m. on ICE Futures U.S. in New York. Cocoa for March delivery was down 0.1 percent at 1,453 pounds ($2,323) a ton on NYSE Liffe in London.
European cocoa processing fell 6.2 percent in the fourth quarter to 327,982 tons, the lowest volume for the three-month period since 2005, the European Cocoa Association in Brussels said yesterday. Bean grindings in North America may have slid 4.4 percent in the same period, according to the average of 10 analysts in a Bloomberg survey published yesterday. The Washington-based National Confectioners Association will release processing figures for the period tomorrow.
‘Settled’ Range
Cocoa prices will trade on the “low side” of the “well-settled range” of the past 12 months in the short term, Barry Callebaut said. Cocoa ranged between 1,367 pounds and 1,748 pounds ton in the past 12 months in London.
Raw sugar for March delivery was 1 percent down at 18.44 cents a pound on ICE. White, or refined, sugar for March delivery declined 0.9 percent to $497.40 a ton on NYSE Liffe.
Arabica coffee for March delivery was 0.3 percent lower at $1.521 a pound in New York. Robusta coffee for March delivery was little changed at $1,952 a ton in London.
To contact the reporter on this story: Isis Almeida in London at Ialmeida3@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at Ccarpenter2@bloomberg.net.
