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Cocoa Trader Sees Strong Demand Offsetting Bumper African Crops

  • Dutch firm Cocoanect expects a balanced market this season
  • Premiums to buy cocoa in the physical market skyrocketed
Cocoa Farming In Ivory Coast
Photographer: Jose Cendon/Bloomberg

Strong cocoa-processing demand will probably compensate for bumper West African crops to leave the global market balanced this season, according to Dutch trader Cocoanect BV.

Large bean deliveries to ports in top producer Ivory Coast are likely a sign of a bigger-than-expected crop at a time production in No. 2 producer Ghana is also set to expand, said Max Goettler, a trader at the Rotterdam-based company. Still, processing demand will prevent the market from experiencing a significant surplus.