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Commodity and Currency



From a 3 month low seen in early March, the market climbed steadily during the month. Nothing particularly significant to report as the market continues to drift higher. Still the market seems over priced and a sudden large correction is still forecast (note not ‘expected') in the coming weeks. Time will tell. In the meantime ADM have announced the closure of their Hull Cocoa Pressing plant, which is significant for UK jobs and almost an inevitable capacity fall out following ADMs' acquisition of Schokinag last year. Maybe a good opportunity for significant Cocoa powder buyers to look at other sourcing options?


Following the sudden drop versus the Euro at the end of February, sterling improved during March to finish around the 1.13 level. The continuing volatility triggered by the Greek bail out and the UK election means that the next few weeks will reflect uncertainty in Forex markets. I think most of us are already fed up with the political parties squabbling, and the sooner the election is over the better! Obviously the election outcome and the new Government measures to address the debt situation will play a major part in determining Sterling's position in months to come, but for now, it could go and probably will go, both ways!

Tony Mycock
6th April 2010

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