Deflation

[Freamon]

Yes, let's blame the harvest - not some chap from the City who uses leveraged loans at cheap rate (check LIBOR) to buy all future supply of beans to make a killing

Has anyone actually done this?

Also, surely when it turns out the harvest is actually ok, the price of the futes will crash and said bloke in the City will go bankrupt?

 

[AtW]

Has anyone actually done this?

Yes.

Quote: "The purchase was enough to move the entire global cocoa market, sending the price to the highest level since 1977, and triggering rumours and intrigue in the City."

Source: Mystery trader buys all Europe's cocoa - Telegraph

That guy will sure get his bonus and his local Porsche/Ferrari dealership will benefit, but you'll be paying for it every time you buy anything remotely related to cocoa beans.

 

[Freamon]

Yes.

Quote: "The purchase was enough to move the entire global cocoa market, sending the price to the highest level since 1977, and triggering rumours and intrigue in the City."

Source: Mystery trader buys all Europe's cocoa - Telegraph

That guy will sure get his bonus and his local Porsche/Ferrari dealership will benefit, but you'll be paying for it every time you buy anything remotely related to cocoa beans.

Luckily, straight after this happened, the cocoa price fell by 10% in 5 days and is now well below where it was when this bloke apparently cornered the market.

So no, I don't think he's the reason chocolate is expensive.

 

[AtW]

Luckily, straight after this happened, the cocoa price fell by 10% in 5 days and is now well below where it was when this bloke apparently cornered the market.

Point is that some unknown trader can corner market - maybe this time it did not work, or maybe it did work and he made enough despite price drop.

Price of cocoa doubled in the last 4 years, so yes that is reflected in chocolate costs.

 

[DimPrawn]

Point is that some unknown trader can corner market - maybe this time it did not work, or maybe it did work and he made enough despite price drop.

Price of cocoa doubled in the last 4 years, so yes that is reflected in chocolate costs.

Having seen your photos online, I can only say that smaller, more expensive chocolate bars are to be welcomed.

 

[Dearnla]

I did 6 months at Cadbury's - oh happy times.
32 Creme Eggs for £3.50 - bliss....Free CDM if you ate it in the office, free Schweppes drinks from the fridge.

No wonder I'm now Diabetic!!

Oh and they buy loads of Cocoa beans direct from the growers in places like Ghana - the Govt. sets the prices so the growers get a decent price and stops them being exploited...

 

[AtW]

in places like Ghana - the Govt. sets the prices so the growers get a decent price and stops them being exploited...