U.S. chocolate maker Hershey Co has positioned itself to receive a sizeable amount of cheap cocoa from futures exchange ICE, a move that highlights difficulties African producers are having to sell beans at a recently-agreed premium, traders said.
According to several market sources, Hershey moved to take delivery of thousands of cocoa lots before the December contract expires on Dec. 15. Dealers suggest volumes of up to 30,000 tonnes.Hershey's move happens in a moment when Ghana and Ivory Coast, the world's top producers, are selling their first full crop under a new scheme that includes a price premium of US$400 per tonne, created to help alleviate farmer poverty.
"The exchange right now is the cheapest place to buy cocoa," said a U.S.-based broker, indicating Hershey's move was justified by lower prices compared to the hefty African premiums. The two African countries reacted to the ICE trade, threatening to suspend cocoa companies' sustainability schemes.
Philippines Philippines Latest News, Philippines Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »