Expana to launch 23 new Molasses Expana Benchmark Prices

Following a period of feedback, Expana has decided to launch 6 monthly Expana Benchmark Prices (EBP) for blackstrap, light, and dark cane molasses. During the feedback period, Expana has also been able to establish that 17 delivered prices, which use the FOB prices as a basis, can be launched on the same day, Wednesday, November 27, 2024.

The initial proposal was announced in a market note published on Monday, October 7, 2024.

The assessments will 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. Molasses, a byproduct of cane sugar, is mainly produced in the Southeast. Product is typically shipped from this region, with the cost calculated on an FOB basis plus freight based on the destination. 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.

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