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Cameroon Cocoa off 7-year Highs as Supplies Rise

Source: Reuters
18/08/2008

Yaounde, Aug 14 - Cameroon cocoa prices have dipped from last month's 7-year high as supplies in the world's fifth-biggest grower increased, farmers said on Thursday.

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Cocoa was selling in the main trading centre of Kumba at 960-970 CFA francs per kg ($2.21), down from 1,000 francs in July, said Jospeh Nde, manager of Cameroon Marketing Commodities (CAMACO), a major cocoa producing and exporting company in the south west province.

"There is this slight drop in prices because we are seeing many more beans today than last month. Supply is increasing slowly but steadily," Nde said.

Benchmark futures in New York <CCZ8> at $2,727 per tonne have fallen around $500 from last month's 28-year peak, but historically high prices have attracted unlicensed buyers to country's economic capital, Douala, looking to sell abroad.

Some farmers warned prices in Cameroon would drop sharply in the coming months as heavy rains had already damaged roads.

"This will prevent many buyers coming in, and the few who dare travel the bad roads will dictate their prices to farmers," said Dickson Tambe Ashu, manager of the Mamfe Central Area Cooperative Union.

Prices were steady at 800-850 CFA francs per kg, he said.

The cocoa season in the central African country runs from August 1 to July 31 of the following year, with peak harvesting and marketing from November to January. The mid-crop is harvested from May to July or early August.



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