Europe cash cocoa butter ratios firm
July 14, 2013
Ratios for cocoa butter, the key ingredient in chocolate, were firm on Friday, but activity was limited as dealers awaited second-quarter grinding data due next week, traders said. Europe’s grind, to be published on Monday, is expected to show a rise of 5-10 percent from depressed year-ago levels.
“We haven’t seen ratios on this level since 2009,” one butter trader said. “We expect to see a 10 percent rise in grinding, anything below that would be disappointing.” Price ratios for cocoa butter for September delivery were 2.25 times nearby London cocoa futures on Friday, unchanged from last week.
Price differentials for cocoa beans on Europe’s cash cocoa market eased this week due to a lack of demand. “It seems that the holiday season has started,” one cocoa beans trader said. Differentials for good quality Ghana beans for September delivery were at 90 pounds over the London September 2013 cocoa contract, compared to 90 pounds last week. Differentials for Ivory Coast beans for September delivery eased to 55 pounds over London September contacts compared to 65 pounds last week. Courtesy Reuters