Indonesia's cocoa grinders to expand, consume more beans

JAKARTA, April 12, 2011 - Indonesian cocoa grinders expect to process 280,000 tonnes of cocoa beans this year, up about 55 percent from last year, as  grinders expand capacity to benefit from a recent tax change on cocoa beans exports, an industry official said on Tuesday.

The government slapped an export tax on cocoa beans for the first time last April in an effort to encourage the retention of beans for local refining and possibly gain a premium in international markets.

NY Coffee and Cocoa market close review for today, April 12, 2011

COFFEE
* May arabica coffee futures fell 0.80 cent to close  at $2.7380 per lb.
 

* May/July spreading contributed to the day's heavy volume
ahead of the spot contract's first notice day April 20.
 

* Market was firm on tight supplies and strengthening  chart-based signals, but turned negative on spillover pressure  as the Reuters-Jefferies CRB index <.CRB> fell about 2 percent  when oil slumped - traders.

Indonesia Sulawesi cocoa price fall on futures, high export tax

JAKARTA, April 12, 2011 - Indonesia's Sulawesi cocoa beans prices fell this week on expectations of a drop in New York prices and a hefty export tax applied for April shipments, an industry official said.

Sulawesi fair-average cocoa beans were offered at around 22,000 rupiah ($2.5) per kg this week, down from an average of 27,000 rupiah per kg in March, said Dakhri Sanusi, secretary general of the Indonesian Cocoa Association.

"The government increase in export tax in April to 15 percent at a time when New York cocoa prices are expected to fall on resumption of cocoa shipments from Ivory Coast is a piece of bad luck for local farmers," said Sanusi.

Mexico coffee farmers hoard on hope of higher prices

MEXICO CITY, April 12, 2011 - Mexican coffee producers may be hoarding their  beans to see whether record prices push even higher, adding to a supply squeeze that helped propel the coffee market to a 34-year peak last month.

Rodolfo Trampe, head of the national coffee association Amecafe, told Reuters in an interview on Monday exports from the world's fourth-largest arabica producer have fallen about a quarter so far this season compared to last year.

"There are some problems in the supply chain," Trampe said.

Cargill says Dutch cocoa plant back online in days

AMSTERDAM, April 11 (Reuters) - Production in a cocoa processing plant in the 

Netherlands damaged in a fire on Sunday will resume within the next few days, owner U.S. agribusiness giant Cargill said on Monday.

On Sunday evening a fire broke out in the dust aspiration system of Cargill's cocoa processing plant in Wormer but was put quickly under control, Cargill said in a statement.

"We have assessed the equipment affected and expect production to resume within the next few days," the company said.

The fire was the second at a Dutch cocoa plant in as many days. On Saturday a fire broke out in an Archer Daniels Midland Co. (ADM) cocoa processing plant in the same town.

ADM said in a statement on Monday that the facility remained operational, though its capacity was reduced.
In 2003 a fire in ADM's plant spread to cocoa warehoused and burned for several days. 

Source : reuters

Brazil coffee crop shapes up well, weather helping

BRASILIA, April 11, 2011 - Brazil is set to gather a good quality coffee during the world's biggest harvest, starting in mid-May, helped by improved rains and increased spending to boost yields, producers told Reuters on Monday.

The global coffee market cannot afford for much to go wrong with the harvest, which provides about one-third of the global supply. Low global stocks and rising consumption have led to a doubling of prices since June last year.

NY Cocoa market close review for today, April 11, 2011

* Key July cocoa futures rose $43 to settle at $3,028 a tonne.

* May/July position rolling kept volume strong ahead of  first notice day for May on April 15 - traders.
 

* The arrest of Ivory Coast's Gbagbo ends a four-month  standoff with presidential rival Alassane Ouattara, but it may  not be enough to end a civil war and soothe ethnic divisions in  the world's top cocoa grower. 

* Market pared its gains after Gbagbo was arrested as it  raised hopes that the world's top grower will resume its cocoa  exports soon - traders.
 

* Production in a Cargill cocoa processing plant in the  Netherlands damaged in a fire on Sunday will resume within the  next few days.

Source : reuters