• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business

Cash crunch forces cocoa traders to delay West African purchases

1 year ago
in Business, Economy, Features, highlights, Home, home-news, latest News, Markets
1 min read
0 0
0
85
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Cash crunch forces cocoa traders to delay West African purchases

A liquidity crunch upending the global cocoa market is forcing traders to delay bean purchases from the world’s largest producers, according to people familiar with the process.

Traders are running out of cash as a record rally forces them to put up more money to back their futures position. Buying more physical beans would require them to hedge their purchases in the futures market.

As a result, many traders and chocolate companies are opting to delay purchases of beans for the next season, said the people, who asked not to be identified because they aren’t allowed to speak to the media.

Ivory Coast and Ghana, which account for more than half of global supplies usually sell as much as 80% of their cocoa crop before the harvest starts in October. The so-called forward sales allow the nations to guarantee a minimum price to be paid to cocoa farmers, many of which still live below the poverty line.

Bad weather, aging trees and crop disease have slashed output this season, forcing both countries to delay bean deliveries. Market participants are losing confidence in their ability to honor forward contracts, and there’s also uncertainty about the size of the next crop — another reason why many opted to defer purchases, the people said.

The cocoa market is grappling with a third year of shortages and a liquidity crunch that spurring wild price swings. Prices more than doubled this year and soared well past $11,000 a ton, making cocoa more expensive than copper. But at the start of this week, futures traded in New York tumbled, at one point falling as much as 27% to head for the biggest two-day decline in data going back to 1960.

RelatedPosts

Government on Course to Exceed 2025 Macroeconomic Targets 

Finance Ministry Invites Public Input for 2026 – 2029 Budget

CHAN 2024: Uganda Dominates Guinea; South Africa Holds Algeria

Some small and mid-sized trading houses have already been forced to close out their trades as access to financing becomes difficult due to greater scrutiny from banks wary of loan defaults and bankruptcy.

Source: bloomberg
Via: norvanreports
Tags: Cash crunchCash crunch forces cocoa traders to delay West African purchasescocoa traders
No Result
View All Result

Highlights

Ipswich Salvages Late Point in Championship Opener Against Birmingham

GFA and BetPawa Enhance partnership; Locker Room Bonus Extended to Malta Guinness Women’s Premier League for 2025/26 Season

Senyo Hosi Writes: So Long, My Friends

IPR Ghana Mourns Victims of Military Helicopter Crash

Oil Prices Set for Dramatic Weekly Drop on Tariff Fallout

Manchester United Unveils £50 Million Upgrade to Carrington Training Complex Ahead of New Season

Trending

Business

Government on Course to Exceed 2025 Macroeconomic Targets 

August 9, 2025

Government on Course to Exceed 2025 Macroeconomic Targets  Ghana’s economy is on track to post better-than-targeted outcomes...

Finance Ministry Invites Public Input for 2026 – 2029 Budget

August 9, 2025

CHAN 2024: Uganda Dominates Guinea; South Africa Holds Algeria

August 9, 2025

Ipswich Salvages Late Point in Championship Opener Against Birmingham

August 9, 2025

GFA and BetPawa Enhance partnership; Locker Room Bonus Extended to Malta Guinness Women’s Premier League for 2025/26 Season

August 9, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.