PHYSICAL COCOA - Traders focus away from trading

Physical cocoa trading was at a low ebb last week as the focus moved away from the market for an annual industry meeting in London.

Trading has been slight anyhow in recent weeks, traders said. Ghana appears to have ended its marketing for now while there are indications Ivory Coast's mid crop beans are on average below exportable standards.

This week cocoa market buyers and sellers gathered in London for the annual cocoa dinner.

"There is every reason for declaring this week a non business week," a trader said.

"I can not think of anything that has traded or got close to trading." Ivory Coast was said to have been last traded at 47 stg under July and in-store cocoa was valued at 20 stg under July. Ghana was last valued at five stg to 15 stg premium to futures prices through to July/September delivery.

Traders are assessing the quality of Ivory Coast's mid crop. Crop forecasters predict a mid-crop of 120-140,000 tonnes compared with 180-200,000 tonnes last year.

But up-country buyers told Reuters earlier this week the bean count is running below the exportable count of 110 per 100 grammes. Some London traders said only 50,000 tonnes of the crop might be exportable.

"By and large the remaining beans will have to hang over to be blended into the main crop," a trader said. Traders said Ghana cocoa was not being marketed any more by the Ghana Cocoa Marketing Board.

They said they suspected Ghana was holding back some cocoa stocks for sale later in the season but that sales have probably finished for now.