SE Asia sees mixed cocoa prices<\/p>\n
KUALA LUMPUR (Reuter): Malaysian cocoa prices were mixed
\nyesterday after an overnight fall in New York's CSCE cocoa
\nfutures, but rates were higher in Indonesia amid tight supply,
\nregional traders said.<\/p>\n
"The market's been pretty quiet lately...the prices are just a
\nreflection of some adjustment," said a trader in Tawau, the
\nlargest cocoa-growing area in Malaysia's eastern Sabah state.<\/p>\n
Supply of local cocoa beans has been acutely short in Malaysia
\nsince a dry initial harvest for the April\/May\/June period, local
\ntraders said.<\/p>\n
Imported beans were making up the shortfall, but demand from
\ngrinders was not exactly encouraging, said the traders.<\/p>\n
"There is no surprising off-take or pattern consumption...it's
\npretty stable," said a grinder.<\/p>\n
In New York, the CSCE cocoa futures ended sharply lower on
\nTuesday and towards the bottom of the day's range, pressured by
\nspeculative selling. September cocoa fell $29 per ton on the day
\nto $1,510 after ranging between $1,508 and $1,538.<\/p>\n
Second-month December closed $29 on lower at $1,559, while the
\nback months also ended $29 lower.<\/p>\n
Yesterday, the Malaysian Cocoa Board quoted the SMC 1A grade
\nout of Tawau at 3,500 ringgit a ton ($1,335.9), down 110 ringgit
\nfrom Tuesday but unchanged from a week ago.<\/p>\n
The board quoted the SMC 1B grade out of Tawau at 3,405
\nringgit, lower by 155 ringgit from Tuesday but up 45 ringgit from
\na week ago.<\/p>\n
Traders quoted the SMC 1A at 3,550 ringgit and the SMC 1B at
\nbetween 3,445 and 3,455 ringgit a ton a Wednesday.<\/p>\n
In Indonesia, cocoa prices were higher yesterday as players
\ncovered positions amid tight supply, traders said.<\/p>\n
"Supply continues to be tight, and incessant rains for about
\n10 days have made it more difficult to get beans," one trader
\nfrom Ujung Pandang, capital of the key growing region of South
\nSulawesi, said by telephone.<\/p>\n
"Some players are actively looking for beans to fill
\ncontracts, and are willing to pay a premium," he added.<\/p>\n
Traders said the amount of mouldy beans arriving at Ujung
\nPandang was increasing because of the rains, which also hindered
\nthe drying process.<\/p>\n
"Some of the beans are 17 percent mouldy, which is much higher
\nthan the acceptable level of four percent," one said. "The mouldy
\nbeans cannot be exported because of stringent quality control
\nmeasures in countries like the United States."<\/p>\n
Traders said fair, average quality beans were quoted at 3,350-
\n3,450 rupiah\/kg in Ujung Pandang, compared with 3,300-3,350
\nrupiah a week ago, and 3,450-3,500 rupiah on Tuesday.<\/p>",
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