This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A Rising Tide for Agricultural Commodities

Stocks in this article: HSY K MCD KFT SLE SBUX SJM PEP


Christian of CPM Group said on the demand side, cocoa is just modestly higher.

At the same time though, there have been some supply concerns driven by political problems in the Cote d'Ivoire, West Africa, the largest producing country of cocoa. These political issues have led to a one-month export ban on Cote d'Ivoire cocoa as pressure is applied to the government to force the president to step down. "There's an ill ease in the cocoa market because of the political risks within Cote d'Ivoire. And that has pushed the price up."

Still, Christian noted that overall supply shouldn't experience any shock given that the current political situation doesn't' affect any of the cocoa that's already been licensed for export. In addition, cocoa exports in Cameroon and Ghana have likely been rising.

"Our expectation is that the price could actually come off some more, but stay relatively high."

CPM Group predicts that cocoa prices will stay above $3,100 dollars a metric ton for the next week or so, at least.

PFGBEST's Rosenberg said Cote d'Ivoire's unrest has caused many cocoa farmers to flee the country in fear for their lives. Many of those Cocoa farmers had been trained and certified to farm cocoa by a Fairtrade training program, Rosenberg noted in a weekly report. "The training programs have been halted as well. This will leave the country's cocoa industry with a shortage of capable farmers. It could take three or more years for the number of certified farmers to reach its former level," he cautioned.

Penn.-based Hershey, (HSY) which is engaged in the manufacturing, marketing, selling and distribution of packaged chocolate and confectionery products, food and beverage enhancers, and gum and mint refreshment products, said it expects adjusted gross margins to be relatively flat year-over-year in 2011 despite "meaningfully higher input costs."

The maker of Reese's, Twizzlers and Kit Kat confections brands said despite the higher ingredient costs, "productivity and cost savings initiatives are in place" and "we continue to leverage the global go-to-market capabilities we have built over the past few years."

5 of 7

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs