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COCOA

After the Cocoa Market settled back during the month of April, it fell further during May as further positive news emerged. Shipments of the Cocoa that was held up in the Ivory Coast commenced, around 80,000tonnes so far, and the quality worries seem to be unfounded so far, with the Cocoa reported to be in good condition and of a good quality. Further arrivals at the ports of the newly harvested Mid Crop also look to be of a very high quality and volumes are higher than last year. Obviously the picture is not completely clear, however everything does seem positive which has had the bearish impact on the market.

The Cocoa Powder situation remains very tight with Cocoa Butter ratios at a very low level, although recent cover taken by large users has resulted in the ratio firming.

Jenny Lindford has written an interesting article, The Cost of Cocoa: Chocolatier.co.uk examines the cocoa market, click here to read the full article.

OTHER COMMODITY news

Sugar prices continue to cause concern, with producers having the whip hand. As a result Organic prices are about to follow the huge price hike seen earlier this year from the European Refiners. Increases of 30% are mooted which brings levels for standard Organic Sugar up to around £15-1600 per tonne. This is very bad news and will inevitably lead to further manufacturers moving away from Organic food ranges.

Cereal prices are still very firm and with the dry spring across most of Northern Europe , there are fears that yields will be down by at least 15% which is, for the time being, keeping prices firm.

Again we are seeing some of the speculators coming back into Commodity Markets and this could cause more market distortion going forward.

CURRENCY


Sterling staged a bit of a recovery during May this was more of a market correction as towards the end of the month Sterling eased back to the 1.135 level.

Tony Mycock 4.5.11

   
         
     
     
   

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