Ivorian cocoa prices climb on early-season supply concerns

12:55 |


* Weeks of poor weather have buyers worried

* New sector reforms could also affect supply

* Season starts on October 1

By Loucoumane Coulibaly

ABIDJAN, Sept 11 (Reuters) - Cocoa prices in most of Ivory Coast's principal growing regions and at its two ports surged last week as exporters and merchants scrambled to secure stocks due to worries about early-season supply, farmers and buyers said on Tuesday.

The 2012/13 season in the world's top grower opens on Oct. 1 and there are concerns that a month of unseasonable cool, cloudy weather as well as disruption caused by a sweeping government-led reform of the sector could affect output.

The uncertainty caused ICE Cocoa futures to hit a 10-month high last week, and December cocoa edged up $3 or 0.1 percent to $2,656 per tonne on Tuesday. Benchmark London December cocoa was up 2 pounds ($3.20) at 1,711 pounds per tonne.

A purchasing manager at a European cocoa export firm said on Tuesday that the average price at the port of Abidjan was about 850 CFA francs ($1.66), up from 800 CFA per kg to 830 CFA the previous week.

"There is still demand, but there's not enough cocoa arriving in Abidjan," said the manager, who asked not to be named.

The average price at Ivory Coast's second port of San Pedro was between 850 CFA and 900 CFA francs per kg, up from around 850 CFA francs the previous week.

"The grinders have started competing. They are paying very high prices for beans, because they are worried they won't hit their volume targets at the beginning of the season," said a San Pedro based exporter, who also asked not to be named.

In the coastal region of San Pedro, farmers said the average farmgate price rose to 650 CFA francs per kg, from between 550 CFA and 600 CFA the previous week.

"There isn't much cocoa. All the merchants want to buy beans," said San Pedro farmer Labbe Zoungrana.

In the western region of Soubre, in the heart of the Ivorian cocoa belt, farmers said the average price climbed to at least 600 CFA francs per kg, compared with between 550 CFA and 600 CFA the week before.

"The merchants have started to fill up their warehouses. Most are buying and stocking the beans. They are hoping to make big profits when the new season starts and the new price is announced," said Soubre farmer Emile Konan.

In the centre-western region of Daloa, which accounts for around a quarter of Ivory Coast's national output, farmers said the average farmgate price was between 550 and 650 CFA francs per kg, compared to around 600 CFA the previous week.

"The prices have climbed because there are many buyers on the ground. Some farmers don't want to buy. They are waiting for the new price, which they think will be higher," said local farmer Marcel Aka. ($1 = 0.6246 British pounds) ($1 = 513.0280 CFA francs)

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