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 ...
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)?
Chocolate? Meh...
“If it was beer, I’d be worried.”
INBEV has been trying.
I’m with you on margin requirements, but in this particular case they’re taking delivery.
“””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.”””
Something is amiss!!!!
“It appeared that there had even been demonstrations to thank Big Brother for raising the chocolate ration to twenty grams a week. And only yesterday, he reflected, it had been announced that the ration was to be reduced to twenty grams a week. Was it possible that they could swallow that, after only twenty-four hours? Yes, they swallowed it.”
George Orwell....1984
see post #52.
You are right!
That guy holding those beans doesn’t need a Pick to play Guitar.
Armajaro’s bold bet on higher prices comes as cocoa prices have risen 150 per cent over the past two-and-a-half years, prompting recession-hit chocolate makers to reduce the size of their bars and increase prices.
The hedge fund gained control of the beans by buying July cocoa futures and holding them until their expiry on Thursday.
Looking at the company website, it appears that this certainly in their line: Commodities – cocoa, coffee and sugar origination and distribution.
“It was the Dukes! It was the Dukes!”
“Soros?”
LOL! That’s the first thing that came to my mind too. He’s got us the shorties now.
Oh, those silly Hunt brothers. Always trying to corner something. One time it’s silver, then golf ball and now some type of bean.
Oh, those silly Hunt brothers. Always trying to corner something. One time it’s silver, then golf balls and now some type of bean.
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