|A.||INDICATIVE COCOA PRICES|
|1.||New York closing on 17.02.2017||2,021.33||2,079.00|
|2.||New York Closing Kina Equivalent|| 6,416.92 ||6,600.00|
|3.||London Closing on 17.02.17|| 1,648.67 ||1,702.33|
|4.||London Closing Kina Equivalent||6,542||6,766.02|
|5.||Exchange Rate US$/Kina (BPNG Midrate)||0.315||0.3150|
|6.||Exchange Rate Pound/Kina(BPNG Midrate)||0.252||0.2516|
|7.||Average Kina per tonne equivalent||6,479.63||6,683.01|
|8.||Estimated FOB Price (less C.I.F Costs) -a/||6,479.63||6,683.01|
|9.||Estimated Average DIS (Kina/tonne) -b/||5, 183.70||5,346.41|
|10.||Estimated Average DIS (Kina/bag)||323.98||334.15|
|11.||Estimated Average Wet Bean Price (K/t) -c/||2,073.48||2,138.56|
|12.||Estimated Average Wet Bean Price (toea/kg)||207.35||213.86|
|a.||weighted average of all CIF, discounts and other costs to export destination|
|b.||assumes 80% of FOB|
|c.||assumes 40% of recovery rate|
ACTUAL DIS & WET BEAN PRICES(Tuesday 21st Feb 2017
ACTUAL DIS & WET BEAN PRICES(Tuesday 2nd.02.2017)
|DIS KINA PER BAG||Wet Bean Toea per Kilo||DIS KINA PER BAG||Wet Bean Toea per Kilo|
|Rabaul||315||324||0.80 - 1.00||345||350||0.90 - 1.30|
|Kokopo||305||323||0.80 - 1.00||340||350||0.90 - 1.30|
|Kerevat||305||0.80 - 1.00||340||0.90 - 1.30|
|Kavieng||250||0.80 - 1.00||330||0.90 - 1.30|
Both the New York and London markets closed lower at US$2021.33/tonne & GB£1648.67/tonne respectively. The New York market shows a decrease of 2.8% while the London market show also a decrease of 3.2%. The decline in prices is attributed to excess supply from major producers in West Africa. The bumper yields are a result weak Harmattan season that has positively impacted production. Many traders are thus expecting a supply surplus this season. Furthermore, a weak demand from major markets has also contributed to a downward slump in cocoa prices. Many romantics thus had the added bonus of lower confectionery prices during the Valentine’s Day giving that special someone that extra special gift.
At the domestic market, estimated FOB and DIS prices decreased by 3% to close at K6, 479.63/tonne (K405/bag) and K5, 183.70/tonne (K324/bag) ending Tuesday 21st February 2017.
Actual Average DIS prices paid by exporters to producers decreased by 12% from K321/bag (K5, 136/tonne) on the first week February to K282/bag (K4, 534/tonne) with a range of K250/bag in New Ireland to K335/bag in Madang . Most major ports were paying above the K300 mark while Kavieng, Namatanai, Kimbe, Popondetta and Kieta paid from K250 – K295 per bag. Domestically the decline in prices mirrored price movements on the international markets. The difference in prices in different ports was due to competition among exporters and other related costs of doing business.
The computation of the F.O.B. prices are based on the quoted futures price and exchange rate, and actual F.O.B. prices may vary from and between exporters.