Ivorian cocoa exporters are paying up to 20% above the official farmgate price of 1,200 CFA francs ($2.05) per kilogram to secure beans as supplies tighten. Middlemen are demanding the premium, despite warnings from Le Conseil du Café-Cacao against exceeding state-set prices. The competition stems from a sluggish main crop harvest and poor pod development, raising fears that exporters may fail to meet contracted volumes.
While futures remain pressured by surplus, rising domestic prices signal tightening physical supply. Cocoa futures in New York traded around $5,400 a ton. An expected El Niño could bring hotter, drier conditions to West Africa, with over half of Ivory Coast already in drought.
Port arrivals since October 1 are down 43% year-on-year at 173,158 tons.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing