Demand for cocoa powder ahead of Christmas stirred up activity in the Asian physical market this week and helped butter prices defy pressure from abundant supply and a lack of interest from chocolate makers, dealers said on Friday.
Grinders across Asia are struggling to sell butter, a key ingredient for making chocolates, as consumers are also well-stocked. Butter ratios were unchanged at 0.83 to 0.88 times London futures, with no reports of deals.When processing beans, grinders get butter and cake, which is later pressed into powder. Butter is a key ingredient of chocolate products such as candy bars and is also used to make spreads and soaps, while powder is used for coatings in chocolate-making, beverages and ice cream.