Ivory Coast cocoa farmgate prices were mixed this week with mouldy beans and little actual buying hurting some regions but traders starting to seek beans for the new season providing some support for prices elsewhere. Top grower Ivory Coast has endured a torrid 2008/09 season, with arrivals some 15 percent below last year's levels and the April-September mid crop failing to make up for ground lost in quality or volumes of beans.
The purchases manager of an exporter said the average price hit 700 CFA francs ($1.53) per kg in the bush compared with between 640 and 670 francs but quality and the volume of trade meant that few farmers were able to take advantage of it. "The prices have slightly improved to around 700 francs but very few sellers benefited from it because of the moisture in the deliveries. Many of the exporters are still on holiday and are getting ready to start up again next month," he added.
The main crop, which begins in October, is expected to be larger than last year but the lack of investment in the cocoa sector amid years of political turmoil is likely to continue weighing on the quality of the beans farmers produce. Benchmark cocoa futures in ICE hit a one year high on $2,999 a tonne earlier this year, boosted by fund buying and concerns that the El Nino weather pattern could have an adverse impact on global production.
The price dropped to $2,813 at 1103 GMT on Friday. In the western region of Soubre, the average price fell to between 400 and 450 francs per kg compared with 450 and 500 francs the previous week due to the high moisture content of beans and the mould, farmers said.
"The prices have gone down to between 400 and 450 francs. The buyers are complaining a lot about the moisture of the beans," said Roger Tano, who farms near Soubre. Average prices in the central-western region of Daloa, which produces a quarter of the national output, were unchanged at 400 francs but there were signs of increased activity. "The prices are the same but we are starting to see a lot of traders coming into the bush to renew contacts with the planters and start buying for the new season," said farmer Modeste Koffi.