SE Asian cocoa prices mixed against NY fall
SE Asian cocoa prices mixed against NY fall
KUALA LUMPUR (Reuter): Cocoa prices in Malaysia rose yesterday, fueled by strong demand for cocoa beans, while Indonesia quoted lower in tandem with an overnight fall on New York CSCE cocoa futures.
A bad early crop, which could slash Malaysia's usual mid-year cocoa harvest by 60 percent, was keeping prices firm and pressuring traders to source beans from other growing nations.
"We're importing as much as we can from Indonesia and Ivory Coast to meet the demand of the 12 local (bean) grinders," said a trader in Malaysia's cocoa main growing area of Tawau.
Industry sources said demand was so high that grinders were reluctant to complain about bean quality.
"I told a fussy grinder he could return the beans from my farm if he wasn't happy. He quickly said it was all right," a grower in Tawau told Reuters.
On Wednesday, the Malaysian Cocoa Board quoted Standard Malaysian Cocoa (SMC) Grade 1A out of Tawau at an average of 3,428 ringgit a ton and Grade 1B, also out of Tawau, at an average of 3,388 ringgit.
Compared to Tuesday, the 1A was up 38 ringgit while the 1B was up 68 ringgit.
But if compared to a week ago, the 1A was up 60 ringgit, while 1B was down 100 ringgit.
On Wednesday, trading houses quoted the 1A at around 3,478 and the 1B at 3,408-3,418.
In Indonesia, cocoa prices were marginally lower in line with a decline in New York overnight, with market activity easing on the eve of the country's general election.
Traders said fair average quality (FAQ) cocoa beans were quoted at Rp 3,040-3,050 per kg at Ujungpandang, capital of the key growing region of South Sulawesi, compared with Rp 3,050- 3,070 on Tuesday and Rp 3,025-3,050 a week ago.
Cocoa was quoted at Rp 3,512 per kg in the North Sumatran capital of Medan, unchanged from Tuesday and compared with Rp 3,530 a kg a week ago.
"There are some players covering to fill contracts, but the market overall is quiet because of the elections," one trader said. "Farm workers will be going to their villages to vote."
Nearly 125 million Indonesians are eligible to vote in the elections on Thursday. Pre-poll violence has been the worst in more than three decades.