Domestic price decreased to K7, 540/tonne or K471/bag in September 2016, 1.2% lower than the previous month of August (K7, 632/tonne or K477/bag). In the month of October price dropped to K7, 250/tonne or K453/bag, which is 3.8% lower than the previous month (September). Prices collected on a daily basis from exporters around the country averaged as follow:
Month Average (kina/bag) Price(kina/bag) % change
September 2016 K7,540/tonne K471 -1.2%
October 2016 K7,250/tonne K453 -3.8%
At the end of September, cocoa prices on both terminal markets followed a downward trend following persisting reports of improving West African crop.Prices on the two cocoa futures markets recovered in the early part of September, after the decline experienced in the second half of the previous month (August). Nevertheless, despite the cocoa supply deficit in the just-ended cocoa season 2015/16 turning out to be larger than expected at the beginning of the season, cocoa futures prices in September were mostly affected by expectations of a production surplus in the new 2016/2017 season resulting from improving weather conditions in West Africa towards the end of August. Furthermore, the strengthening of the Pound Sterling by 3% against the US Dollar by that period, following the release of weak US and better UK macroeconomic data, also contributed to setting a bearish tone to the London market. At the end of September, cocoa prices on both terminal markets followed a downward trend following persisting reports of improving West African crop.
In the month of October, the rise in prices was short-lived during the first week of the month only and cocoa futures prices continued to decline until the end of the month under reviewed. The general market expectations of a surplus for the on-going 2016/17 cocoa season was the main factor that led to downward pressure on cocoa prices, despite reports of excessive rainfalls in some cocoa producing areas in Cote d’Ivoire, thus raising the threat of crop disease.
The international price decrease was mirrored on the domestic market.
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