Expana Proposes to Launch 6 Molasses EBP

All Market Notes 7 October 2024

Expana is proposing to launch 6 monthly Expana Benchmark Prices (EBP) for blackstrap, light, and dark cane molasses and is collecting feedback from market participants until Monday, 28th October 2024. 

If the industry supports this proposal, Expana suggests launching the monthly assessments on Wednesday, 27th November 2024. 

The proposed specifications for these assessments would be as below: 

The proposed assessments would reflect the transactable value at 16:00:00 US Eastern time. 

Molasses is a thick syrup and a byproduct of the sugar refining process that is used as a sweetener and is most used in baking goods, candy or rum. It is produced by crushing sugar cane or sugar beets and its varieties include light, dark, and blackstrap. 

Light molasses is made from the first boiling of cane or beet juice, the by-product is the lightest in color, has the sweetest taste, and mildest flavor. Light molasses is the most popular option and typically gets used to add moisture and color to baked goods as well as in candy products.

Dark molasses comes from the second boiling of the cane or beet juice, with a thicker consistency, and a stronger flavor profile than light molasses. Dark molasses typically gets used for flavor and distinct color in baked goods and candy.

Blackstrap molasses is the most concentrated type, with a bitter taste and thickest consistency by comparison. Blackstrap molasses would typically get used to make rum, marinades, sauces, glazes, and in candy products. 

Due to the opaque nature of the US sugar and sweetener industry, reliable benchmarks are difficult to find. The complex nature of the industry, with high levels of trade protectionism and variable input costs, has led to high demand for such benchmarks. These Expana Benchmark Prices would provide an independent reference point for the industry.

Please send any questions or comments about this market note to methodology@expanamarkets.com, by Monday, 28th October 2024, clearly stating which market note your comments relate to, and if comments are intended for publication by Expana. 

Expana will acknowledge receipt of all comments by email.