European Cocoa Grindings in 2Q Beat Expectations
July 11 2017 - 03:43AM
Dow Jones News
By David Hodari
European processing volumes of raw cocoa beans rose 2.1% in the
second quarter year-over-year, slightly outperforming industry
expectations, 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--ticked up to 331,850 metric tons of beans in the
April-June period--although that represented a slight fall from the
first quarter--,the Brussels-based ECA said.
The rise consolidated the 1.1% rise recorded in the first
quarter of 2017 and was higher than the expectations of analysts
and traders surveyed The Wall Street Journal. On average, traders
had expected an increase of 1.6%, which one London-based trader
referred to as "gentle."
The data came after a quarter in which investors balanced bumper
West African yields with tepid European demand to calibrate their
expectations.
Grinding figures are often used as a proxy for demand but
traders say they can also reflect the location and importance of
factories or the movement of beans.
The release of the figures came one day before Swiss-based Barry
Callebaut AG--the world's largest cocoa processing company--is set
to release its first-half results for its Europe, Middle East, and
Africa division.
Grinding numbers for North America, from the National
Confectioners Association, and for Asia--from the Cocoa Association
of Asia--are expected to be released next week. The WSJ poll put
NCA second-quarter grindings up 2.5% and CAA grindings up by an
average of 14.5%.
The ECA represents 20 companies in the European Union and
Switzerland, including Barry Callebaut, Cargill Cocoa &
Chocolate, Ferrero SpA, Nestle SA and Mondelez International
Inc.
Write to David Hodari at david.hodari@wsj.com
(END) Dow Jones Newswires
July 11, 2017 03:28 ET (07:28 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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