Deliveries of cocoa to Brazil's warehouses including imports, were down 21 percent from this time last year at 2.36 million bags, according to data from Bahia Commercial Association. Brazil had an unusually large October-April main crop harvest last year of around 1.26 million 60-kg bags (75,600 tonnes), while this year's main crop is expected to produce more typical output of up to 900,000 bags.
Arrivals from the top cocoa state Bahia jumped in the last week from the previous seven days as the main crop harvest gathered speed. Some 67,548 bags were delivered there, 17 percent more than in the previous week. Output from other, smaller cocoa-producing states continued to rise more slowly with the harvest expected to kick in later.
Farm gate prices fell to a range of 72 to 73.5 reais ($39.97-$40.80), their lowest since November 2008, following the downward slide in futures prices. Compounding the bearish outlook, the International Cocoa Organisation (ICCO) on Wednesday increased its estimate for a global cocoa surplus in 2010/11 to 341,000 tonnes from 325,000 tonnes.