High cocoa butter ratios in Asia deterred chocolate makers this week, but grinders saw inquiries for powder from the Middle East ahead of the Muslim fasting month of Ramadan, dealers said on Friday.
The ratios were unchanged at a four-year high at 2.0 times London futures and traded at that level this month, but grinders may have to cut prices to attract buyers. Butter gives chocolate its melt-in-the-mouth texture.
"To be realistic, I think you need to go a little bit lower to below 2.0. Maybe at between 1.96 to 1.98 times. Most people are probably well covered. Ratios have to soften a bit so that we can move the butter," said a dealer in Singapore.
"I don't see powder prices moving down. At this moment people are probably holding back powder until they can sell butter. Most people are reluctant to sell powder at below $2,000 because of the losses they have suffered."