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Cocoa Declines as Surplus to Increase via Cameroon

July 28, 2011 at 17:43 by Andriy Moraru

The Cocoa futures fell today as the market reacted to the news coming out Cameroon, the Africa’s fourth biggest producer of this soft commodity.

The production of the cocoa beans more than doubled to 6,840 metric tons last month (from 3,200 metric tons in June 2010). Cameroon’s Cocoa and Coffee Board also reported an increase of 16 percent (to 5,547 tons) in country’s cocoa exports in June.

Meanwhile, the market experts estimate the global cocoa surplus at about 292,000 tons. Although the price for the commodity remains near its past year’s levels, there’s little positive for the cocoa bullish traders to be seen in the recent news from the suppliers.

September cocoa futures is down from $3,032/ton to $2,973/ton or almost 2 percent as of 17:39 GMT on ICE today. The daily minimum was set at $2,972.

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