Ivorian cocoa farmgate prices extend losses

Cocoa farmgate prices in Ivory Coast extended losses last week, dragged down by poor quality and low prices at ports, exporters and farmers said on Wednesday. Low bean quality and small deliveries of cocoa for export have blighted the 2008/09 season in the world's biggest grower, but late January's trend of shippers rushing to buy beans has stalled, and farmers are optimistic that the April-September mid crop will be larger than normal.
Farmers said there were large volumes of beans available in the bush but prices have sharply fallen well below 700 CFA francs per kg ($1.35) at ports, down from more than 800 francs in late February. Fears over a shortage of Ivorian beans helped drive up world cocoa futures late last year and early this year, bucking the trend of other commodities which have been hit by the global economic downturn, but those prices have falling back in recent weeks, knocking prices paid at ports.
"The price at ports has fallen to around 700 CFA francs per kg and below as a result of the fall in London prices and the poor quality of beans," said an Abidjan-based purchases manager of a European exporter. Futures for delivery in May traded at 1,765 pounds per tonne in London on Tuesday, down 13 percent from their late January peak, but virtually unchanged from the start of 2009.
Coffee and Cocoa Bourse (BCC) data in several regions were not available as a result of thin trading, an official said. Farmers in the western region of Soubre, where BCC figures were unavailable, said farmgate prices fell to around 400 CFA francs per kg compared with 600-650 francs the previous week. "Prices have fallen sharply in the bush," said Salem Kone, who farms nar Soubre. "That suprised us, and a lot of farmers have refused to sell," he said.
In the southern region of Agboville, BCC figures showed the average price rose by 25 CFA francs per kg, but farmers said they received less. "We've sold at 550 CFA francs per kg compared with 700 francs per kg two weeks ago as a result of falling prices in Abidjan," said farmer Jerome Patende. Below are average farmgate prices in CFA francs per kg as quoted by private buyers, co-operatives and shippers, and published by the Coffee and Cocoa Bourse (BCC). Included are prices paid on delivery to San Pedro and Abidjan ports.