Skip to comments.Mystery trader buys all Europe's cocoa
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 youre 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 ...
OK, it was me.
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.
Obama’s fault... Michelle doesn’t want us eating chocolate...
now I’m REALLY PISSED!!!!
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.
Chocolate is luxury and not a necessity? Thou speakest blasphemy! To the fires with Jemian! :)
Lindsay Lohan needs comfort.
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.
This is why we all need to end our dependence on foreign cocoa. :-)
Somebody’s gonna wake up with a hangover ...... and a lot of cocoa.
If it was beer, I’d be worried.
$1B of cocoa? 1B of Spanish bonds.
Cocoa as a hedge against Spanish bonds? Naw.
A Bass resurrection?
This is what happens when more & more money is created (printed).
Gov. Nicholls Warf looks in good shape. So does Chartres St.
Heck they all do, now.
Yech—look at those fingernails!
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?
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.
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.
It was that “time of the month”-and I had a craving.
...plus shopping makes me feel better ;^)
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.
Nelson Bunker Hunt (pretty ain't he!)
It sound like his style.
Who needs precious metals?
Chocolate and pork bellies and corn. Mmmmmmmmm.
I had that same thought. Glad I’m not the only one.
So would this be “fair trade” chocolate and coffee? I’ve seen that term bandied about, but hadn’t paid much attention.
My grandfather lost his shirt in silver when the Hunt brothers lost theirs... I hate that bastard, he cost me my inheritance.
The Bilderbergs have decided the coming One World Government is going to use the Chocolate Standard for monetary stability.
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.
Guns or chocolate...decisions, decisions!!! (I’m going with the chocolate...maybe the bad guys will turn nice after a BIG Hershey bar!)
It looks like Diana in Wisconsin has gone survivalist!
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.
I’m all for honest dirt under your nails—it’s just less unappealing if in turn you have short nails.
Yours is the best idea about this that I have seen.
All i saw when looking at that picture is the guy really really needs to cut his nails.
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.
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)?
“If it was beer, Id be worried.”
INBEV has been trying.
I’m with you on margin requirements, but in this particular case they’re taking delivery.