Ivorian cocoa prices rise on supply concerns

Thu Jan 5, 2012 12:49pm GMT

 

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* Exporters fear beans shortage from Feb

* Dry harmattan hurting crop outlook

By Loucoumane Coulibaly

ABIDJAN, Jan 5 (Reuters) - Farmgate cocoa prices in Ivory Coast's main growing regions rose slightly last week as buyers built stockpiles ahead of an expected slowdown in supply from February, farmers said on Thursday.

A dry harmattan wind that has been hitting the region also could hinder cocoa bean development and curb output.

"There is a worry that there will not be enough cocoa in the weeks to come," said a purchase manager at an Abidjan-based international cocoa export firm.

"The pace of delivery of beans from the farms to the city is falling sharply," the manager said, asking not to be named.

He added that prices in the port of Abidjan were around 715 CFA francs ($1.41) per kg, up from around 700 CFA francs the previous week.

"Prices have risen a bit because cocoa is hard to find. Buyers now have to go far into the hinterland for a few beans," said Abel Konan who farms in the outskirts of Daloa.

"Buyers are seeking a lot of cocoa. We feel they are worried about not having enough cocoa to satisfy their clients in the city," Konan said.

In the western region of Soubre, in the heart of the Ivorian cocoa belt, farmers said the average price rose to about 625 CFA francs per kg from 600 CFA the previous week.

"The weather is bad. Buyers from major exporting companies are afraid of not having enough export-size beans in a few weeks. They are making a lot of purchases. The competition is strong," said Salam Kone.

In the western region of Gagnoa, farmers said prices ticked slightly higher to 575 CFA francs per kg from 550 CFA francs as buyers doubted they would get beans in the last two months of the main cocoa crop harvest.

"The main harvest (from October to March) will end with some difficulties. Some buyers are already in doubt because they wonder how they will fulfill their contracts," said François Badiel, a farmer and manager of a local cooperative.

($1 = 508.1390 CFA francs) (Writing by Bate Felix, editing by Jane Baird)

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