27 July 10:05 AM
Report on processing in America has proved to be controversial. Processing has dropped by almost 10%, but, at the same time, the number of reporting factories has also dropped by 10%. At this point there are no comments about non-reporting factories and their share in total processing; therefore, it is not clear whether processing has actually dropped.
Processing in Asia has risen by 5% in comparison to last year.
Ghana is the second largest cocoa producer worldwide, so any troubles in the country have direct impact on cocoa market. Many analysts suppose that rapid price rise of cocoa is connected with political instability in Ghana.
Major fundamental factors for the nearest future:
- reconsideration of ICCO forecast for 2012 towards deficit reduction,
- shortage of cocoa processing in Europe and North America during the second quarter of 2012,
- cocoa stocks at ICE storages remain at the level of 5-year high,
- possible political instability in Ghana after the President’s death.
According to the Analytics Team of Commodity Trading Department of Masterforex-V Academy, price change in the nearest future is currently hard to predict, as political situation in Ghana is uncertain and may outweigh any other fundamental factors.
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European stock indices have started this trading week positively and are currently trading in the green zone. Some indices keep making new 5-year highs.