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Commodities and Currency News

   




Cocoa Market
Well, what we said in last months Newsletter has proved to be a complete load of rubbish!
This month the speculators piled back into the Cocoa Market and the news on the fundamentals is not good. So by today, the market surged onward and upwards to hit a 22 year high last seen in 1986, the year when Canaries were finally made redundant in the mines, being replaced by gas detectors!
The news from the Ivory Coast is still not good, with port arrivals of Beans at almost 50% of those last year. This sort of news supports the activities of speculators who prey on volatility and love a market that moves and switches dramatically.

Cocoa Graph

Currency
As the Cocoa market surged, so Sterling fell like a stone, hiccupped, and then dropped again to an all time low as another Bank of England Interest Rate drop to 2% was announced today (4 th December).
We are withholding any views or predictions for obvious reasons, but suffice it to say that if the £ weakens any further then we will have to re-look at EU priced ingredients.

Currency Graph

 

General
No one wants to hear this, but all this news points to bad news potentially for chocolate pricing in the second half of 2009. At least we can offer fixed prices through to end June 09, but we will keep you posted as to where prices look to be heading for the latter part of 2009.

Tony Mycock 5.12.08


 
 
 
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
e-mail: sales@hbingredients.co.uk Website: www.hbingredients.co.uk