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COCOA

 

Cocoa Prices firmed slightly during July, which was more or less expected. We are now entering the ‘silly season', with low volumes and activity in most commodity markets due to summer holidays and the fact that not much is happening. The Ivory Coast crop figures are slightly below last year – which was a record high – and also they are close to having sold their target volume through the new direct tender system. Recently announced Grind figures were on the low side, but a lot of this reflects the new production capacity outside the traditional North American and European regions. Subsequently there is less volume in finished products being made in these established markets and exported to the former Eastern Bloc and Asian countries.

Again we expect Cocoa prices to remain at the top end of the range for the coming few weeks.

 

CURRENCY

Sterling continued to strengthen against the Euro during July, although there was a slight hiccup when the UK economic figures disappointed against forecast. However that was relatively short lived and the upward trend continues. Currently around €1.28.

 

SUGAR

The Industry is still talking of an increase of €50/tonne from 1 st October, however the point is, 50 euros on what price? Sugar prices are very inconsistent, with one of the main UK players seemingly airing business at any margin.

On the wider issue of Food prices generally, there is a very serious drought situation across a large swathe of the United States, which has resulted in prices for products like Corn (Maize) rocketing. Click here

A question of watch this space – the impact will hit prices across the world, it is just uncertain as to ‘how badly?'

 

Tony Mycock
31st July 2012

 

 
       
   
   
   

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