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Commodity and Currency Reports


Cocoa Market
Still a large amount of volatility, with Speculators active and fundamentals still showing negatives with arrivals at port in Ivory Coast being some 16% behind last year and currently there is no reason why the market will not remain high. During March the market steadily increased and now tops the 1900 level, although going forward prices do fall on all forward positions.
So to repeat from last month's Newsletter, that whatever happens, it is unlikely that cocoa prices will drop back to the low 1000's. We would recommend anyone who buys multi tonnes for manufacturing to consider contracting some forward volume when dips occur.

Well, the heady heights that sterling enjoyed around the Euro1.10-1.12 range during February was soon scuppered as we went into March, with sterling dropping back down to just above the 1.05 level.

With the ‘tourist season' starting – [lots of foreign G20 people in London this week,] sterling has climbed back a little! Again to repeat the mantra, the weakness of sterling is positive for anyone exporting or fighting against imported finished products. Many importers are looking for UK manufacturers to produce products they have been importing up to now.

More and more news items are appearing in the media about people spending their holidays in the UK, as well as an expected influx of tourists from North America & Europe, and with the Ice Cream Industry gearing up for the season, let's all hope for some decent weather over Easter and beyond!.

Tony Mycock 06.04.09

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HB Ingredients
Cocoa House, 22 Bell Lane,Bellbrook Industrial Estate,
Uckfield East Sussex. TN22 1QL.
Tel:+44(0)845 88 00 799 Fax:+44(0)845 88 00 833