FCMP
Latin American sellers are in the driving seat
Europe
Improved valorization
There is little to report on in the EU FCMP market. The buyside refrains from absorbing normal volumes of FCMP because of the high cocoa prices that suppress consumer demand for chocolate and this means that even though valorization of FCMP has improved, the sell side has little incentive to boost production. At the current price of EUR 4250 ex works the odd deal that takes place is for nearby delivery dates.
Americas
Latin American origins are well positioned for future export business
Last month’s assumption of prices continuing to ease came true as prices landed at a spot level of USD 3800 FOB in early August. This makes Latin American FCMP origins perfectly positioned to benefit from upcoming import demand in a major market like Algeria. Imports by private Algerian players in particular have this year been quite weak. With Brazilian demand absorbing much less this year and prices for Argentinean and Uruguayan product being available at a considerable discount compared to GDT levels, the region appears to be ready and willing when Algerian buyers feel like catching up.
Asia-Pacific
Solid demand at GDT absorbs additional volume
Despite quite an increase in the volume on offer on the early August GDT session the demand in the region proved to be strong enough to pull the price of FCMP up by a few percentage points. Clearly, a large part of the buyside had waited for this moment to start purchasing. Going forward, though, the current differential between Oceania and Latam prices is too large to be sustainable as Oceania powder needs access to the world market. Post GDT product is on offer at prices around USD 4100-4150 FOB but only those buyers that need product urgently are willing to accept these levels. The last few day the futures for Q4 and Q1 have been trading below USD 3900 in anticipation on a slightly weaker market.
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