The recovery in North America's cocoa grind ran out of steam at the end of last year, industry data has shown, putting a dampener on the commodity's attempts to set a fresh 32-year high.
The region's chocolate makers processed 111,986 tonnes of cocoa beans in the October-to-December quarter, the National Confectioners Association said.
The figure represented a fall of 1,748 tonnes, or 1.5%, compared with the same period in 2008, ending a series of narrowing year-on-year declines.
The grind was also lower than in the previous quarter.
"Maybe people hoped the data would be a bit better," Stephanie Garner, at Sucden Financial Cocoa, said, with some traders expecting the grind to show little if any decline.
"The market did open a bit lower."
Market reaction
Prices eased £7 to £2,320 a tonne in early deals in London, for the March contract, before recovering to end at £2,340 a tonne, up £13 on the day. New York cocoa ended down $6 to $3,425 a tonne.
Nonetheless, York prices are not far from a December peak of $3,510 a tonne, the highest since February 1979 for a near-term lot.
London contract remain within striking distance of the 32-year high, for a spot lot, of £2,356 a tonne set on Thursday.
Lagging recovery
Cocoa prices have been driven higher by forecasts of a fourth successive year of cocoa production falling behind recovering demand.
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North American cocoa grind 2009, by quarter (year-on-year change)
Q4: 111,986 tonnes (-1.5%)
Q3: 118,405 tonnes (-0.5%)
Q2: 105,123 tonnes (-6.8%)
Q1: 99.875 tonnes (-13.0%)
Total: 435,389 tonnes (-5.4%)
Source: NCA |
Europe's cocoa grind returned to year-on-year growth in the last three months of 2009, industry data showed.
However, Barry Callebaut, the Swiss-based chocolate giant, warned last week that America's chocolate market was "not recovering yet".
The group was one of 11 companies, including Hershey, Mars and Nestle, surveyed by the NCA.
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