Cleveland — Commodity market sources have denounced claims by some European chocolate manufacturers that speculators drove up the cost of cocoa last year, an indication of their negative impact on the market.

The Association of the German Confectionery Industry (BDSI) issued a statement complaining speculators were responsible for inflating prices, pointing to a more than 18 percent drop in world cocoa prices since hitting $3,378 per ton — a 25-year high — in December.

However, Promar International, Inc.’s commodity expert Tom Earley tells Candy & Snack TODAY speculators do have a role to play because they bring liquidity to the market.

“It seems the manufacturers lashed out at those speculators who have no vested interest in the businesses they trade,” he explains.

Meanwhile, greater supply is expected to continue to bring cocoa prices down, with the International Cocoa Organization’s (ICCO) March 3, 2010 forecast showing cocoa production and grinding estimates increasing one and 2.5 percent, respectively, compared with 2009 figures.

The price of world cocoa is currently hovering at about $3,047 per ton, the ICCO states.