• 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 Agribusiness

Ghana’s Cocoa Delivery Delay Poised To Inflict $1 Billion Loss On Major Trading Houses

1 year ago
in Agribusiness, Economy, Features, highlights, Home, home-news, latest News, Markets, Trade
1 min read
0 0
0
159
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Ghana’s Cocoa Delivery Delay Poised To Inflict $1 Billion Loss On Major Trading Houses

Major trading houses face potential losses of approximately $1 billion due to Ghana’s failure to deliver cocoa beans as scheduled this year. Sources indicate that this situation has compelled traders to exit short positions amid surging cocoa prices.

Ghana has announced plans to delay the delivery of up to 350,000 metric tons of cocoa beans this season, nearly half of the contracted amount. This delay is expected to result in around $1 billion in total losses for cocoa traders and processors.

Large trading firms like Cargill, Olam, and Barry Callebaut rely on the futures market to lock in prices for cocoa they have not yet sold. They purchase beans months in advance with the intent to resell at a profit and hedge against price drops by betting on falling prices in the futures market. However, this strategy backfires when deliveries are delayed in a rising market.

According to industry sources, traders have been forced to buy back their short positions at significantly higher prices, leading to substantial financial losses. Although they anticipate eventually receiving the cocoa, traders have taken new short positions for May 2025 delivery at approximately $7,000 per ton. Should they receive the physical cocoa at $3,000 per ton, they still face potential losses of $4,000 per ton.

The cocoa market, currently in its third year of deficit, has seen prices double this year. Traders may attempt to pass on some of the increased costs to chocolate manufacturers, who, in turn, could struggle to transfer these expenses to consumers already reducing chocolate consumption.

Furthermore, market liquidity has dwindled as exchanges demand higher cash collateral to secure hedges, leading to increased price volatility. This situation has caused a significant slowdown in cocoa market trading, impacting both the industry and consumers alike.

RelatedPosts

2026 Budget Hearings Conclude with Focus on Accountability and Resource Allocation

Tullow Oil Reports 11.4% Decline in Reserves

RTI Commission Slaps State and Private Institutions With GHS 5.6m in Fines Over Information Breaches

Tags: $1 Billion LossCocoa Delivery DelayGhana's Cocoa Delivery Delay Poised To Inflict $1 Billion Loss On Major Trading HousesMajor Trading Houses
No Result
View All Result

Highlights

Communications Minister to Address Standoff with MultiChoice Ghana Over DStv Pricing

Bilateral Trade Between Ghana and China Hits Historic $11.8bn Mark

IMF Commences Fifth Review of Ghana’s Programme Today

From Missing Contracts to Phantom Cargoes: Why Ghana’s G4O Could Be the Scandal of a Generation

World Bank Warns Ghana of Mounting Jobs Crisis, Urges Productivity-Led Reforms

Galamsey has Destroyed 1.2m Hectares of Farmland, Displacing Over 500,000 Farmers – PFAG

Trending

Features

2026 Budget Hearings Conclude with Focus on Accountability and Resource Allocation

September 29, 2025

2026 Budget Hearings Conclude with Focus on Accountability and Resource Allocation Ghana’s 2026 Budget Hearings have officially...

Tullow Oil Reports 11.4% Decline in Reserves

September 29, 2025

RTI Commission Slaps State and Private Institutions With GHS 5.6m in Fines Over Information Breaches

September 29, 2025

Communications Minister to Address Standoff with MultiChoice Ghana Over DStv Pricing

September 29, 2025

Bilateral Trade Between Ghana and China Hits Historic $11.8bn Mark

September 29, 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.