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Commodity and Currency




Following the drop in the Cocoa Market during August, September started in the same way with the market weakening to a 12 month low. Inevitably there was a correction and the market climbed back to around the 1900 level. The concern is that as the speculators have been absent for some time and they may well come back into the market. However we are just into the new Cocoa year and so far all the fundamentals seem positive and so we hope that the market will remain around the 1900 level.

As far as chocolate prices for the first half of 2011 are concerned, there will definitely be a reduction on current levels, so we strongly suggest that you run down stock levels towards the end of December and look to replenish in January at the lower prices.


Dairy prices are still firming up and higher prices are expected to remain through until the Spring yes, it's that time of year again!

Sugar remains in short supply and it now looks like an increase of around £10 per tonne will be pushed through by the EU refiners. Organic prices are also very firm still and are likely to increase by around £30 per tonne.

The widely publicised shortages in cereal harvests across Europe & Russia are leading to significant increases in the Starch and Glucose Industry. Due to a really poor potato harvest in Northern Europe, Potato starch is in very short supply which has dragged native Wheat Starches along with prices doubling against last year. The Glucose Industry in Europe is almost exclusively based on Wheat, and the producers are warning of shortages and will only contract forward for 6 months. The Glucose price increase is around £85-£100 per tonne and this also impacts on Fondant and other glucose containing products.




Following a reasonably buoyant August, Sterling fell back fairly steadily but dramatically during September and finished the month close to 1.15, almost 5% below the levels enjoyed last month. The Euro is strong against most currencies as the European Central Bank is not expected to loosen it's monetary policy in the coming months. Sterling remains fairly solid against the US$ at around 1.57.

Tony Mycock 4.10.10


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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