North America Cocoa Grind Seen Rising in Second Quarter

(Bloomberg) – Cocoa processing in North America probably rose 2.2 percent in the second quarter as chocolate demand increased, a survey showed.

Grinding climbed to 128,817 metric tons from 126,044 tons a year earlier, according to the average of seven analysts surveyed by Bloomberg News. An increase would mark the seventh straight in data from the National Confectioners Association. The group in Washington will release figures on July 17.

Cocoa futures in New York have jumped 41 percent in the past 12 months. A gauge of cocoa butter, a byproduct from bean processing, has surged 71 percent, data from an industry group show.

“Grind numbers should continue to climb as strong chocolate demand is keeping butter prices firm,” Sterling Smith, a specialist at Citi Futures in Chicago, said in an e-mail. “Strong movement from the Ivory Coast,” the world’s top cocoa producer and exporter, signals higher consumption, he said.