Grinders in Asia are breathing a sigh of relief as the main crop gathers pace in Indonesia's island of Slaws, raising hopes the much-needed good quality beans are on their way.
Arrivals of cocoa beans from plantations to the port of Makassar were estimated to have rise to 2,000 tonnes this week from 1,500 tonnes last week, according to dealers on Thursday. Erratic weather in Slaws had sledded the main harvest to May from April.
"It looks like the harvest is reaching its peak, although I've also heard the crop is about to start in some areas," said a dealer in Makassar, the provincial capital of South Slaws. "The harvests no longer follow the usual patterns, I must say," he said.
As supplies of better quality beans picked up, the bean count fell to 115 beans per 100 gram from 130 beans at the start of the harvest, when dealers found plenty of mouldy and small beans.
Bean count is used to measure quality and a lower count indicates good quality. "The quality has improved. Although the bean count for most Slaws beans is 115, I think it's not too bad," said the Makassar dealer. The national standard for bean count is 110 beans per 100 gram in Indonesia, the world's third-largest cocoa producer after Ivory Coast and Ghana.
Slaw beans for exports were offered at discount of $180 a tonne under New York's July contract on a free-on-board basis, higher than $110 last week because of growing supplies. New York Board of Trade cocoa for July rose $1 to $1,837 a tonne on Wednesday in a trade dominated by positions rolling. "Everybody is waiting for beans.
If supplies keep coming out, then I guess the discount will widen and go back to $205. Cocoa is still quite expensive right now," said a grinder in Malaysia, which is Asia's largest grinder. "It's been extremely difficult to get good beans," he said. Indonesia sells beans to grinders in Malaysia, Singapore, China, Europe, Brazil and the United States.