Ivory Coast unrest slows cocoa trade, says ICCO

LONDON: Ivory Coast unrest is slowing economic activity and cocoa trade “in particular,” International Cocoa Organisation executive director Jean-Marc Anga said. Trucks carrying cocoa from villages to ports for exports are being subject to increased inspections by “the authorities and law and order officers,” Anga said by phone from London on Friday. The Ivory Coast is the world’s largest cocoa grower.

The West African country is bracing for a second day of political violence after a disputed presidential election resulted in both incumbent Laurent Gbagbo and challenger Alassane Ouattara claiming victory. As many as 32 supporters of Ouattara, the United Nations-backed winner of the November 28 election, were killed on Thursday.

The Ivory Coast cocoa crop for the season that started on October 1 will be 1.3 million metric tonne, Macquarie Group said on December 6. That would be up from the year-earlier harvest of 1.2 million tonne, Macquarie estimated in October. Cocoa prices in London have climbed 4.9% since the disputed election spurred speculation that violence would curb its bean exports.

Cocoa for March delivery dropped £40, or 2%, to £1,966 ($3,059) a tonne by 12:37 p.m. on NYSE Liffe, the first drop this week. “It is a bit early to change the crop forecast,” Anga said. “The cocoa trade is relatively resilient, even at the height of the civil unrest in 2002 cocoa was still able to leave the country.” Anga took over in October as executive director of the ICCO, representing 44 cocoa exporting and importing countries.