Cocoa and sugar prices set to fall, Rabobank
Food, drink and confectionery sectors are set to benefit from more favourable sugar and cocoa prices, as good harvests, debt concerns and fears of recession are having a bearish impact on the markets, claims an analyst.
Keith Floyd, an analyst at agri-commodities market specialists Rabobank, told FoodNavigator.com that on the sugar market, expectations of a surplus in the new season due to large crops in the Northern Hemisphere producer countries, Thailand, and India are likely to weigh on prices.
“For cocoa it is also likely a function of fundamentals,” said Floyd. “The carry-over surplus from the current season’s crop is forecast to be a record high while new season production looks good as weather has been supportive in West Africa in the important August to September period.”
The analyst also claims that commodity prices in general are buckling on recession concerns.
