Chocolate lovers beware. Over the weekend, someone or some group of traders made the largest single cocoa trade for 14 years sending prices to their highest levels since 1977.
The cocoa beans, which are sitting in warehouses either in The Netherlands, Hamburg, or in London, Liverpool or Humberside are equivalent to the entire supply of the commodity in Europe, and would fill more than five Titanics. They are worth £658 million.
Analysts said it was very unlikely that a chocolate company, such as Nestle or Kraft, or even their suppliers, would buy such a huge order in one go and that is was probable that one or a number of speculators, possibly hedge funds, had attempted to corner the market. By doing this, they would have control of the entire supply in Europe, forcing the price yet higher.
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