Asian and North American cocoa grindings fell by 6.5% and 11.6% y-o-y, respectively, in Q2 of 2023, according to figures released by the National Confectioners Association and Cocoa Association of Asia on Thursday, 20th July. According to NCA figures, the total volume of cocoa grindings in North America has hit the lowest levels since Q1 of 2009 when figures were first published for the whole region. These drops come just weeks after the release of the European Q2 grindings figures, which surprised market participants to the downside, as grindings in Europe fell 5.7% y-o-y in Q2. Industry participants have noted that the North American and Asian figures are well below expectations but have expressed some scepticism about whether the sharp drop will lead to a sustained easing of cocoa bean prices. On Friday the 21st, following the publication of the Asian and North American Q2 grindings, several traders told Mintec that although the sharp decrease is larger than expected, they have not been surprised.

Source: The North Africa Journal July 21, 2023 15:56 UTC