German Cocoa Grindings Rise 1.03% in 3Q 2016
October 12 2016 - 07:20AM
Dow Jones News
By Katherine Dunn
LONDON--The volume of raw cocoa beans processed in Europe rose
by 2.9% in the third quarter of 2016 from the same period last
year, according to figures released by the European Cocoa
Association on Wednesday.
Cocoa grindings in the region rose to 343,935 metric tons in the
period from July to September, the Brussels-based ECA said.
Grindings figures measure the amount of raw cocoa processed into
butter and powder for confectionery and chocolate.
The figures were slightly below expectations from cocoa traders
and processors, who had forecast a gain of at least 3% to 4% in the
quarter, as cocoa grinding shifted to Europe from West Africa
following a weak second crop in the world's top cocoa producing
region.
Grinding figures are often used as a proxy for demand, but
traders say they can also reflect the placement of factories or the
movement of beans.
That was particularly true this year.
Several traders and analysts had predicted a gain due to a
smaller harvest and low bean quality in West Africa, the world's
top cocoa region, which caused processing to be reassigned to
European factories.
This reassignment allowed processors to mix the smaller crop
with beans from other origins more easily, and helped grindings
rise by 4.9% in the second quarter compared with the previous
year.
The numbers are followed by comparable figures in North America,
which will be released next Thursday. Asian figures typically
follow within a week, but do not follow a set schedule.
The European Cocoa Association represents 20 companies in the
European Union and Switzerland, including Barry Callebaut AG
(BARN.EB), Cargill Cocoa & Chocolate, Ferrero SpA, Nestle SA
(NESN.EB) and Mondelez International Inc. (MDLZ).
Write to Katherine Dunn at katherine.dunn@wsj.com.
(END) Dow Jones Newswires
October 12, 2016 07:05 ET (11:05 GMT)
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