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COCOA

Towards the end of the month, all out Civil War finally started, with the forces of President in waiting - Alassane Ouattara, moving from their traditional power base of the North of the country down through main towns and cities towards the capital, Abidjan. Apart from the high human cost, this move seems to have been decisive in that the former president's forces are being overwhelmed, so the war looks to be fairly short lived.
The impact of this action has had the effect of easing the Cocoa Market as the ½ million or so tonnes of cocoa held at the ports in Ivory Coast, looks safe. Given that the legitimate Government are out and out favourites to now take power, the risk to the existing stocks and the potential negative impact on the next Main Crop harvest, has lessened and the bear sentiment has returned with the market dropping by almost 20% from the 32 year high of 2340 at the beginning of March down to just below 1900 at one stage last week. We are not yet out of the woods and the market is expected to remain highly volatile during April. Unfortunately the high levels experienced over most of the last 6 months will mean that Chocolate prices for the second half 2011 will be firmer. Cocoa Powder supply remains extremely tight and prices are very firm.

 

 

DAIRY , SUGAR, STARCH & GLUCOSE news

Dairy prices have eased back as we go into spring as expected. This seasonal pattern will continue to act positively on prices over the next 2 or 3 months at least.
Sugar prices are still very firm and availability is an issue and other commodity prices also still remain high. We again are doing all we can to ensure that our prices are as low as possible.

 

 

CURRENCY

It does not often happen, but the graph for Euro versus Sterling followed the Cocoa Market down, dropping by around 4% steadily over the month, settling at around 1.135. Obviously this impacts on Euro based products and prices and so we expect PIDY prices to increase from 1 st June in combination with their new contract prices for Butter and Margarine.

Tony Mycock 4.4.11

 

 

   
         
     
     
   

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