Cocoa Exports from Ivory Coast Down 10% Due to Weather and Disease Challenges

Agriculture – Weaker Ivorian cocoa exports

The latest data from Ivory Coast’s Customs Department shows that cocoa exports dropped by around 10% YoY to 1.3mt in the current season through until the end of July (the season runs from October to September). Adverse weather and the spread of the swollen shoot virus have impacted the domestic cocoa crop. Virus and disease risks remain for 2023/24 as well, which could keep supplies tight for next year. Other major African producers, including Ghana and Nigeria have also been facing similar supply issues this year with both production and exports declining.

UNICA data shows that sugar cane crushing in Center-South Brazil was up 5.3% YoY to 41.8mt over the first half of September; although the pace of the crush did slow from the second half of August where we saw 46.5mt of cane crushed. Similarly, sugar production was up 8.5% YoY to 3.1mt over the first half of September. The sugar mix increased to 51.1% in 1H September, up from 50.7% in 2H August. Cumulative sugar production in Center-South Brazil has increased by 18.7% YoY to 29.3mt for the current season with 49.4% of sugar cane used for sugar production compared to 45.5% a year ago. Higher sugar prices amid supply uncertainty from India and Thailand has clearly sent the signal to Brazilian mills to favour sugar production over ethanol.