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Mystery trader buys all Europe's cocoa
The Telegraph ^ | 7/17/2010 | Jonathan Sibun and Harry Wallop

Posted on 07/17/2010 1:00:51 AM PDT by bruinbirdman

Even Willy Wonka might struggle to use this much chocolate. Yesterday, somebody bought 241,000 tonnes of cocoa beans.

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.

It is unclear which person, or group of traders, was behind the deal, but it was the largest single cocoa trade for 14 years.

The cocoa beans, which are sitting in warehouses either in The Netherlands, Hamburg, or closer to home in London, Liverpool or Humberside is 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.

Eugen Weinberg, an analyst with Commerzbank, said: “For one buyer it would likely be a little bit too large. It would be a crazy number. That said, if you’re cornering the market ...”

“If it looks like cornering, feels like cornering and the price difference between Europe and the US is so large, it probably is cornering.”

“There is some play taking place. No one really knows what is going on.”

Cocoa prices, which had been on the rise this year, rose 0.7 per cent yesterday, to £2,732 per metric ton. By contrast, cocoa being traded on the US exchange fell.

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; News/Current Events
KEYWORDS: agriculture; all; buys; chocolate; cocoa; cocoabeans; europe; european; europes; globaleconomy; mystery; trader
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1 posted on 07/17/2010 1:00:54 AM PDT by bruinbirdman
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To: bruinbirdman

OK, it was me.


2 posted on 07/17/2010 1:04:39 AM PDT by Sender (It's never too late to be who you could have been.)
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To: bruinbirdman

Hmmm.

Interesting.

Darn Chocolate it is the one item that seems to dissapear from our prepper stockade.

Guess if there is an emergency I will have to buy a stockade while others are buying the other essentials.


3 posted on 07/17/2010 1:08:00 AM PDT by Global2010
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To: bruinbirdman

Soros?


4 posted on 07/17/2010 1:12:34 AM PDT by TigersEye (Greenhouse Theory is false. Totally debunked. "GH gases" is a non-sequitur.)
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To: bruinbirdman

Obama’s fault... Michelle doesn’t want us eating chocolate...

now I’m REALLY PISSED!!!!


5 posted on 07/17/2010 1:12:41 AM PDT by Skared2deth
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To: bruinbirdman

Brown gold


6 posted on 07/17/2010 1:17:17 AM PDT by skr (May God confound the enemy)
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To: bruinbirdman

To me, this makes no sense. Chocolate? It isn’t a necessity. Chocolate is a luxury. It is also perishable. If the price is too high for me, I’m disappointed but nothing essentially changes. So, corner this market? Just wait for next year’s crop.


7 posted on 07/17/2010 1:17:47 AM PDT by Jemian
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To: Jemian

Chocolate is luxury and not a necessity? Thou speakest blasphemy! To the fires with Jemian! :)


8 posted on 07/17/2010 1:27:07 AM PDT by Vanders9
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To: bruinbirdman

Lindsay Lohan needs comfort.


9 posted on 07/17/2010 1:29:54 AM PDT by Gondring (Paul Revere would have been flamed as a naysayer troll and told to go back to Boston.)
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To: Vanders9

I know, I know. My family says that. But I decided many years ago that the joys of eating chocolate didn’t outweigh the pain of a migraine and so ... if that buyer thought he’d sell it to me, he just lost big time.


10 posted on 07/17/2010 1:30:56 AM PDT by Jemian
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To: bruinbirdman
Cocoa prices have more than doubled since 2007, forcing chocolate makers to raise prices and in some cases to change recipes to use less cocoa.

This is why we all need to end our dependence on foreign cocoa. :-)

11 posted on 07/17/2010 1:32:41 AM PDT by Gondring (Paul Revere would have been flamed as a naysayer troll and told to go back to Boston.)
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To: bruinbirdman
Get ready for the NEW and IMPROVED China Chocolato CO.
12 posted on 07/17/2010 1:35:45 AM PDT by Candor7 (Obama .......yes.......is facist... ...He meets every diagnostic of history)
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To: bruinbirdman

Somebody’s gonna wake up with a hangover ...... and a lot of cocoa.


13 posted on 07/17/2010 1:39:02 AM PDT by MARTIAL MONK (I'm waiting for the POP!)
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To: bruinbirdman

Chocolate? Meh...

If it was beer, I’d be worried.


14 posted on 07/17/2010 1:53:09 AM PDT by Ronin
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To: bruinbirdman
It's time for us to rebuild a New Orleans, the one that should be a chocolate New Orleans. And I don't care what people are saying Uptown or wherever they are. This city will be chocolate at the end of the day.
15 posted on 07/17/2010 2:07:22 AM PDT by Lonely Bull
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To: Candor7; TigersEye
"China Chocolato "

$1B of cocoa? €1B of Spanish bonds.

Cocoa as a hedge against Spanish bonds? Naw.

A Bass resurrection?

yitbos

16 posted on 07/17/2010 2:24:47 AM PDT by bruinbirdman ("Those who control language control minds.")
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Comment #17 Removed by Moderator

To: bruinbirdman

This is what happens when more & more money is created (printed).


18 posted on 07/17/2010 2:34:35 AM PDT by preacher (A government which robs from Peter to pay Paul will always have the support of Paul.)
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To: Lonely Bull
"It's time for us to rebuild a New Orleans"

Gov. Nicholls Warf looks in good shape. So does Chartres St.

Heck they all do, now.

yitbos

19 posted on 07/17/2010 2:36:31 AM PDT by bruinbirdman ("Those who control language control minds.")
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To: bruinbirdman

Yech—look at those fingernails!


20 posted on 07/17/2010 2:42:10 AM PDT by 9YearLurker
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To: bruinbirdman

China Loves Chocolate, and soon Tobalarone will come with Madarin Labels. Big bucks there my FRiend. Huge big bucks.
And how you may ask? Well controlling the supply of raw materials can leverage corporate takeover. Take your pick which one, and buy it. I wonder which it will be? There are only 4 pr 5 big ones. Will it be a British, Dutch, German or Swiss Choco Corp?


21 posted on 07/17/2010 2:42:10 AM PDT by Candor7 (Obama .......yes.......is facist... ...He meets every diagnostic of history)
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To: bruinbirdman
This article is more proof that the minimum margin requirements for trading in commodities is just too low--my guess is that the traders at the hedge fund did it with an MMR of 5%. That's why my suggestion for real financial system reform we need to impose a 15% rate, which would discourage the type of wild price swings that caused the price of rice and crude to rocket to record heights in 2008.
22 posted on 07/17/2010 3:01:01 AM PDT by RayChuang88 (FairTax: America's economic cure)
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To: Candor7; RayChuang88
"my guess is that the traders at the hedge fund did it with an MMR of 5%."

ChiComs have complained about spot prices set by traders rather than end users, no?

That's one reason they want to control the source or cut deals with them.

They tried buying Rio Tinto. Maybe they should just buy the Ivory Coast.

yitbos

23 posted on 07/17/2010 3:16:01 AM PDT by bruinbirdman ("Those who control language control minds.")
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To: bruinbirdman

NPR, which is to say Liberals/Progressives/Communists, have been pushing the idea of turning all cocoa producing farms into ‘cooperatives’. Then, supposedly, they could set the price of cocoa beans to a ‘realistic’ level so the poverty stricken farmers could get what they should for their crops. NPR was rhapsodizing about this scheme several years ago. Americans were supposed to boycott chocolate and only buy it at artificially inflated prices...with the profit going to South American poor folk. They discussed the same scheme vis a vis coffee.


24 posted on 07/17/2010 3:25:05 AM PDT by hershey
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To: Sender

It was that “time of the month”-and I had a craving.

...plus shopping makes me feel better ;^)


25 posted on 07/17/2010 3:26:18 AM PDT by homegroan (Proud member of the Hoi Polloi......ILLIGITIMA NON CARBORUNDUM..... -that's 4U Dad!))
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To: Jemian
Maybe this is a test run for something more essential, or just to show the world it can do this (buy the entire stock of a commodity and withhold it from the rest of the world).
26 posted on 07/17/2010 3:31:25 AM PDT by Humal
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To: bruinbirdman

I’ll tell ya what’s going on.

The scumbags that manipulate gold prices aren’t getting as much bang for their buck anymore in gold. So they are shifting their efforts to new uncharted waters. cacao today. sugar tomorrow. Possibly Kola nuts, bannanas, coffee, rice, tobacco, tea, and spice the day after.


27 posted on 07/17/2010 3:40:51 AM PDT by mamelukesabre (Si Vis Pacem Para Bellum (If you want peace prepare for war))
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To: bruinbirdman

28 posted on 07/17/2010 3:44:02 AM PDT by Mere Survival (The time to fight was yesterday but now will have to do.)
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To: bruinbirdman

Nelson Bunker Hunt (pretty ain't he!)

29 posted on 07/17/2010 3:47:20 AM PDT by Mere Survival (The time to fight was yesterday but now will have to do.)
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To: TigersEye

It sound like his style.


30 posted on 07/17/2010 3:48:10 AM PDT by Vaduz
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To: bruinbirdman

Who needs precious metals?


31 posted on 07/17/2010 3:52:20 AM PDT by Past Your Eyes (Some people are too stupid to be ashamed.)
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To: Past Your Eyes

Chocolate and pork bellies and corn. Mmmmmmmmm.

32 posted on 07/17/2010 3:55:40 AM PDT by Mere Survival (The time to fight was yesterday but now will have to do.)
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To: preacher

I had that same thought. Glad I’m not the only one.


33 posted on 07/17/2010 3:56:56 AM PDT by FreedomPoster (No Representation without Taxation!)
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To: hershey

So would this be “fair trade” chocolate and coffee? I’ve seen that term bandied about, but hadn’t paid much attention.


34 posted on 07/17/2010 3:59:01 AM PDT by FreedomPoster (No Representation without Taxation!)
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To: Ronin
If it was beer, I’d be worried.

Uh oh.

35 posted on 07/17/2010 4:03:12 AM PDT by ItsForTheChildren
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To: Mere Survival

My grandfather lost his shirt in silver when the Hunt brothers lost theirs... I hate that bastard, he cost me my inheritance.


36 posted on 07/17/2010 4:03:39 AM PDT by ccmay (Too much Law; not enough Order.)
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To: bruinbirdman

The Bilderbergs have decided the coming One World Government is going to use the Chocolate Standard for monetary stability.


37 posted on 07/17/2010 4:11:16 AM PDT by Vinnie (You're Nobody 'Til Somebody Jihads You)
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To: ccmay

Bubbles. Jump on them instantly, the moment you notice them. Get out unreasonably early with big profits. Preferably years before the crash, but certainly months and months before the crash to avoid eventually losing big by getting your timing wrong. Or don’t play if you don’t own the casino.

Sorry your grandfather lost his money with the silver corner.


38 posted on 07/17/2010 4:14:37 AM PDT by Mere Survival (The time to fight was yesterday but now will have to do.)
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To: Global2010

Guns or chocolate...decisions, decisions!!! (I’m going with the chocolate...maybe the bad guys will turn nice after a BIG Hershey bar!)


39 posted on 07/17/2010 4:15:58 AM PDT by blu
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To: Sender
Why didn't we think of that?
40 posted on 07/17/2010 4:32:29 AM PDT by Waverunner
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To: 9YearLurker
Any farming gets dirt under your fingernails. As my Daddy always said, dirt makes your fingernails stronger. Looks like this woman illustrates that;look at how long and strong those nails look.
You should see me after I come in from a day in the yard. If I am not covered head to toe, it wasn't a good day. I love dirt. And it feels so good getting clean after that.
41 posted on 07/17/2010 4:40:24 AM PDT by vis a vis
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To: bruinbirdman; Diana in Wisconsin

It looks like Diana in Wisconsin has gone survivalist!


42 posted on 07/17/2010 4:42:01 AM PDT by Dr. Sivana (There is no salvation in politics)
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To: bruinbirdman; Kevmo; Perdogg; blam
The cocoa beans, which are sitting in warehouses either in The Netherlands, Hamburg, or closer to home in London, Liverpool or Humberside is equivalent to the entire supply of the commodity in Europe, and would fill more than five Titanics.
Open wide for Chunky. Sounds like someone's gotta a hankerin' for some candy bars.
43 posted on 07/17/2010 4:43:35 AM PDT by SunkenCiv ("Fools learn from experience. I prefer to learn from the experience of others." -- Otto von Bismarck)
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To: vis a vis

I’m all for honest dirt under your nails—it’s just less unappealing if in turn you have short nails.


44 posted on 07/17/2010 4:47:34 AM PDT by 9YearLurker
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To: Humal

Yours is the best idea about this that I have seen.


45 posted on 07/17/2010 5:00:55 AM PDT by Jemian
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To: bruinbirdman

All i saw when looking at that picture is the guy really really needs to cut his nails.


46 posted on 07/17/2010 5:01:25 AM PDT by wiggen (Government owned slave.)
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To: bruinbirdman

This is the money line i searched for;”Most of these contracts are “options” or “futures” giving a trader the right to buy these commodities at a certain price at a certain time in the future. What made yesterday’s trade so unusual was that the mystery buyer or buyers took physical delivery of the commodity. “
They will have to either contract to leave the beans where they are which is to say pay rent or move them,a daunting task since “would fill more than five Titanics.”
The cost of the purchase will be increased whether they leave them where they are or move them.


47 posted on 07/17/2010 5:07:12 AM PDT by wiggen (Government owned slave.)
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To: Humal

I suspect Bonds old nemesis is behind this,SPECTRE.
In all seriousness,not making fun at your comment but the boogeymen invented in fiction would seem to have found life. There’s no logical reason for such a purchase. Will the current cocoa crop be struck with a mystery blight sending prices soaring (Goldfinger seeking to irradiate the US gold stockpile)?


48 posted on 07/17/2010 5:10:50 AM PDT by wiggen (Government owned slave.)
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To: Ronin

Chocolate? Meh...

“If it was beer, I’d be worried.”

INBEV has been trying.


49 posted on 07/17/2010 5:13:24 AM PDT by tired&retired
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To: RayChuang88

I’m with you on margin requirements, but in this particular case they’re taking delivery.


50 posted on 07/17/2010 5:28:12 AM PDT by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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