N. American cocoa grind falls to 2-1/2-year low

(Reuters) – North American cocoa grindings in the second quarter fell to the lowest in 2-1/2 years, data from the National Confectioners Association showed on Thursday, falling within the low end of expectations.

Cocoa processors in the United States, Mexico and Canada reported grinding 120,359 tonnes of beans in the second quarter, ended in June, down 8.6 percent from the same period in 2014 and the lowest volume since the fourth quarter of 2012.

Expectations ahead of the data were for the region’s bean grinding to fall 3-10 percent, with most calling for a 5 percent drop.

It was the third-straight weak quarter following two years of quarterly increases after large chocolate makers raised prices and as weak processing margins deterred grinding.

Cocoa grindings are considered a gauge of cocoa demand.

West Africa, the world’s biggest producing region, has been taking a bigger share of global processing and the International Cocoa Organization (ICCO) forecasts its share will rise by 2 percent to 843,000 tonnes in 2014/15 (October/September). Meanwhile, processing is forecast to fall 5.8 percent to 420,000 tonnes in the United States. The ICCO had previously forecast just a 2 percent drop.

Earlier in the week, figures showed the second-quarter cocoa grind in Europe, the largest region, rose 0.6 percent year-over-year to 309,677 tonnes, above expectations for a slight decline.

The 11 companies that took part in the North American survey are: ADM Cocoa, Barry Callebaut, Blommer Chocolate Co, Cargill Cocoa & Chocolate Co, ECOM, Ghirardelli Chocolate Co, Guittard Chocolate Co, Hershey Co, Mars Chocolate North America, Nestle Chocolate & Confections and World’s Finest Chocolate Inc.