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Commodity and Currency

   
   

 

 

COCOA

Cocoa averaged lower than October during the month, however was fairly volatile ending on rising market heading for 2000. The elections in the Ivory Coast continued to destabilise things, although in general the process seemed to have been going well for most of the time. After the initial deadlock, the 2 main opposition leaders formed an alliance and the final round was won by them, amongst claims of fraud and incorrect returns from certain Northern provinces. This has caused the market to increase over the past few days by over 100 points. Hopefully things will settle down, but there is still the risk of civil unrest which will really cause problems. Prior to the final election round, huge volumes of beans were received in port and the fundamental supply position is very positive which alone should see the market around the 1750 levels.

Cocoa Powder is still in very short supply, Cadbury have withdrawn from the market entirely for 2011 and the closure of the ADM plant in Hull is causing big issues for companies looking for direct matches. Prices are really firm and expected to stay that way into mid 2011.

 

DAIRY , SUGAR, STARCH & GLUCOSE

As we said last month Dairy prices have stabilised, however we expect them to firm up following the recent bad weather in the UK.

The Sugar supply situation is now quite critical, with very limited availability. Tate & Lyle have announced that they are to increase prices across the board for all existing contracts by Euros 176 per tonne (£150) from 1 st January. With the world price still exceeding EU prices, the upward pressure on prices is irresistible and availability is really an issue. We have stock and contract cover albeit at higher prices..

Organic Cereal prices have gone the same way as conventional cereals and so Organic Cereal Syrups are increasing from 1 st Jan.

CURRENCY


After the recent weakness seen during October, Sterling improved against the Euro largely due to the economic turmoil in the Euro zone which culminated in the Eire bail out. Still a fragile situation!

 

Tony Mycock 6.12.10

 

   
         
     
     
   

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