COCOA PRICE FALLS ON STRONG BEANS SUPPLY |
| Posted by Abuja (admin) on Thursday, 10th January, 2008 at 8:02 AM |
Exporters and farmers have said that despite the drop by two per cent to N220, 000 in the price of cocoa, the local price was still strong when compared to international market price. The cocoa trader has therefore noted that it is difficult to break margins if the commodity is exported. Price of cocoa is said to be stable at N230, 000 ex-Lagos and Calabar.
Report has indicated that London cocoa futures were changed below last weeks four-month high in brisk volumes as operators cleared up positions before the expiry of the December contract.
Farmers and traders have however said that the improved quality of the Nigerian cocoa beans with mould level of five per cent on the average has helped to sustain its demand. A cocoa trader has noted that there was strong competition for the beans between exporters and local grinders whose capacity has grown sharply in the past few years due largely to favorable government policies. Licensed Buying Agents who buy beans upcountry has said that farm gate prices for un-graded beans eased to N210, 000/ton in the southwest, N212, 000 in the southeast, from N215, 000 three weeks ago.
Exporters in Ikom in Cross River State have attributed the strong price of graded beans to influx of banks in the area. According to the exporters, the banks now give loans to traders who hitherto depended on exporters for cash, to the extent that everybody now buys the beans directly from the production centers.
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