By Obafemi Oredein

Special to Dow Jones Newswires


IBADAN, Nigeria--Cocoa prices rose higher this week in Nigeria on the back of naira currency devaluation and bean scarcity, industry officials and traders said Wednesday.

In addition, cocoa prices are determined depending on the quality and quantity of the beans in Ondo state, the biggest cocoa producer in Nigeria, said Toba Adenowuro, a former cocoa desk officer at the Ondo state Ministry of Agriculture.

Graded cocoa, which has been certified as fit for export, is trading in Ondo at 2.5 million naira ($3,314) a metric ton, said a trader.

Cocoa traded at NGN2.3 million to NGN2.35 million a ton in Ondo last week, said a trader.

In Cross River, the second-largest cocoa producer, cocoa fetched NGN2.4 million to NGN2.5 million a ton, up from NGN2.4 million-NGN2.45 million on Friday, said a trader.

"The Ondo and Cross River prices are the highest paid for cocoa in Nigeria this year and could rise further if the naira continues its free fall," said Biodun Opatunde, a trader.

The chocolate ingredient fetched NGN2.25 million in Ogun, versus NGN2.2 million on Dec. 1, according to a trader.

In Abia, cocoa is selling for NGN2.2 million a ton against NGN1.85 million a ton a week ago, according to Mazi Uche, an official of the Cocoa Association of Nigeria.

Cocoa prices are steady at NGN2.2 million a ton in Osun and NGN2.1 million a ton in Akwa Ibom, a trader said.


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(END) Dow Jones Newswires

09-06-23 1149ET