JB Foods

JB Foods / Msia cocoa processing: Cocoa processing in Malaysia will likely to remain steady in 2012, underpinned by increased bean production in key producing countries, says Msian Cocoa Board Director General Lee Choon Hui. The forecast by MCB comes at a time when Asian cocoa processing, or grinding, is rising, reflecting better grinding margins and growing demand in the region. Overall cocoa grinding in Asia has overtaken levels seen in Europe and the U.S as global chocolate sales are forecast to reach US$108b this year, likely the result of "a switch in processing activity from the West to origin, where South-East Asia is a key producer of cocoa beans. MCB says, as long as bean supply is adequate, grinding in Malaysia could reach 300k mt/ yr. In 2011, Msia processed 299.3k mt of cocoa. Asian cocoa grinding rose 5.7% yoy to 150.7k mt in 2Q12. The top 3 players, Malaysia, Indonesia and Singapore, together account for up to 12% of global grindings. Cocoa prices in London have climbed 12% so far this year and could rise further amid worries about a developing El Nino weather event, usually associated with a dry spell and below-average rainfall that could curb production in West Africa and Asia. MCB expects cocoa prices to move in the US$2,200-3,000/mt range during the rest of the year, underpinned by steady demand and tight supplies. ICE Sep cocoa futures closed 1.2% down at US$2,209/ton Tuesday.