Ghana did not find buyers for it beans for the first time after a new floor price, Bloomberg reports, citing people familiar with the matter.
The Cocoa Marketing Company (CMC) offered beans for 2020-21 to traders on Wednesday but no deals were concluded as the prices were too high.
Bloomberg reports that Ghana, the second largest producer of cocoa, is testing the market now, instead of September or October, after it and top grower Ivory Coast introduced a $400 a metric ton premium over futures prices.
Traders will have to pay the additional cost, known as the living income differential, as well the regular country premium, which is usually higher for Ghana due to the better quality of its beans.
The managing director of CMC, Joe Forson, said in an interview that he was confident the market will buy Ghana’s cocoa, explaining that what happened was just a “market sounding.”
“It will take some time for the market to adjust, besides, we are not under any pressure to sell 2020-21 crop now, that season is about 15 months away,” he told Bloomberg.