FCMP
Uncertainty rules the Latin American market
Europe
High fat prices take their toll
The FCMP market is firm as despite rising prices most buyers have no real options to postpone purchasing any longer. At the current level of EUR 3950 ex works the buyside shows interest for up to and until Q4, but further forward deals are generally held off. Demand from the chocolate industry remains subdued as the cocoa prices are still extremely high.
Americas
Growing uncertainties dictate short term focus
The Latin American FCMP market is stable but uncertainties are growing. Suppliers have no selling pressure at the moment, but this will change once the seasonal ramping up of volumes starts. Most of the sell side is believed to have empty spots in the sales books, as production costs are so high at the moment that there is no hurry to lock in prices for forward sales. Most of the buyers are also not willing to enter into trades for Q4 and beyond either. There was an ONIL Instant FCMP tender that was largely won by LA product because the shipping period favored this origin. FCMP changes hands at around USD 3600-3650 FOB.
Asia-Pacific
Balanced market
In the second half of July trading activity was relatively slow as it made sense for the buyside to wait for the early-August GDT session, at which FCMP on offer doubles in line with the approach of the Southern hemisphere flush. At the event there was strong appetite for the Sept and Oct delivery dates, indicating that quite a few buyers were indeed reaching the bottom of their stock levels. Post GDT the market remained firm and the price went up further to USD 3500 CIF Asia, also because of support from the futures markets. In the coming months supply will rise seasonally but at the moment there is sufficient demand to expect stability for the next few weeks.
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