European Cocoa Grindings in 1Q Rise to Highest Since at Least 2002
April 16 2019 - 2:35AM
Dow Jones News
By David Hodari
European processing volumes of raw cocoa beans hit their highest
level in at least 17 years at the start of the 2018-19 season,
according to data released Tuesday by the European Cocoa
Association.
Cocoa grindings--the amount of raw cocoa processed into butter
and powder for the manufacturing of confectionary and
chocolate--accelerated to 3.3% on-year in the first quarter from
1.6% on-year growth in the fourth quarter. Still, that pace was
slower than the 5.5% growth in the first quarter of 2018.
Grindings are interpreted by the market as a proxy for
demand.
Despite gentle increases in the second half of the 2017-18
season, annual grindings grew at 4.2% last season to post the
strongest rise in cocoa processing since 2010-11.
That looks set to continue this season, with a quarterly grind
of 370,359 tons being the highest first-quarter figure since at
least 2002.
Weather conditions in western Africa have been broadly conducive
to crop growth and port arrivals have remained relatively strong,
with first-quarter grindings largely in line with analysts'
expectations of traders surveyed by The Wall Street Journal, who
expected a pickup in growth after mild expansion at the end of last
year.
Grinding numbers for North America provided by the National
Confectioners Association, and for Asia from the Cocoa Association
of Asia, are expected to be released in the coming weeks.
The ECA represents 20 companies in the European Union and
Switzerland, including Barry Callebaut AG (BARN.EB), Cargill Cocoa
& Chocolate Inc., Ferrero SpA, Nestle SA (NESN.EB) and Mondelez
International Inc. (MDLZ).
Write to David Hodari at david.hodari@wsj.com
(END) Dow Jones Newswires
April 16, 2019 03:20 ET (07:20 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Kraft Foods Inc. - Common Stock Ex-Distribution When Issued (MM) (NASDAQ:MDLZV)
Historical Stock Chart
From Aug 2024 to Sep 2024
Kraft Foods Inc. - Common Stock Ex-Distribution When Issued (MM) (NASDAQ:MDLZV)
Historical Stock Chart
From Sep 2023 to Sep 2024