RMCF - Choccy-Horror Show: Hedge Funds Pile In As Cocoa Soars To Record High | Benzinga
The biggest squeeze in the cocoa market in more than a decade has pushed prices of the commodity to record highs in recent sessions as hedge funds have piled into cocoa futures since the start of the year.
This has been great news for the speculative investors and funds at the heart of this trade, but bad news for chocolate consumers and manufacturers, such as Hershey Co. (NYSE:HSY).
In speculative positioning across commodity markets in New York and London, traders — including hedge funds — have built up a massive $8.7 billion position, the largest ever in dollar terms, according to data from the Commodity Futures Trading Commission.
Also Read: Valentine’s Day Chocolate This Year Isn’t So Sweet As Cocoa Inflation Tops 100%
Prices Rise As African Growers Hit
Cocoa prices were already moving sharply higher in the final quarter of 2023 as poor weather and disease affected harvests in chief growing areas in West Africa, such as Cote d’Ivoire — the world’s largest producer — and Ghana.
Between ...