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The decline in the Cocoa Market continued during October – this was a trend seen in almost all Commodity Markets as a consequence of the Global economic worries. However, in Cocoa the fundamentals are still very positive and the fact that Cocoa is at two year lows is positive all round. The current range of 1650-1750 is ‘right' and is good for the farmers and end producers alike.

At the end of the month the Ivorian Government announced that farmers would be paid 60% of the end commercial price during the coming season (as opposed to what they have received in the past – around 40%). This is a hugely positive step to motivate and incentivise Cocoa farming after the bitter civil war.


Strange things in the Sugar market with anomalous prices appearing from time to time. Fundamentally things are looking very, very positive for output – the recent floods in Thailand have effected a large part of the growing areas, however the impact is almost purely to delay the harvest by 3 weeks or so – no fundamental loss of yield is expected. Weather in Northern Europe will determine the final output, but all is looking good as we now stand.


Sterling ranged within 3% as the Greek saga continued – what with Bail Outs, Referendums, Strikes, etc, it is hard to see what the outcome will be. Sterling dropped and then recovered and as we talk there looks like an election is now looming in Greece and the talk is that they will exit the Eurozone. The implications of this are too much for my tiny brain, but fortunately people still have to eat, so time will tell!


Tony Mycock
4th November 2011


HB Ingredients
Cocoa House, 15, The Cliffe Industrial Estate, Lewes, East Sussex. BN8 6JL.
Sales order hot-line:+44(0)844 32 44 499
Enquiries:+44(0)845 88 00 799 Fax:+44(0)845 88 00 833