Cocoa prices have dropped over 40% from their recent record high due to financial factors rather than supply-and-demand dynamics. Oil trader Pierre Andurand's hedge fund bet on rising cocoa prices before a significant surge last month. Historical parallels are drawn to the 1970s cocoa market, highlighting the inelasticity of chocolate demand. Cocoa farmers are not benefiting from the price rally, with the CEO of Tony's Chocolonely attributing the crisis to long-term underpayment of farmers in Ivory Coast and Ghana.
Pierre Andurand: The world could run out of cocoa inventories https://t.co/m7wNy99ATJ via @markets
Industry expert explains why cocoa prices are surging https://t.co/alvMG6KJ8u https://t.co/F8E7DJNOpt
Cocoa Crisis Made Worse by Underpaying Farmers, Tony’s CEO Says Rally exacerbated by poor pay for farmers, Lamont says Cocoa prices in Ivory Coast and Ghana are set by government https://t.co/HcA72tcalm
The cocoa crisis has been made worse by the long-term underpayment of farmers, says the CEO of Tony’s Chocolonely https://t.co/coDQCcHetq
Cocoa prices hit records, cocoa farmers must all be becoming millionaires *evil laugh in colonial French in the background https://t.co/Cm74K14t72
I love $HSY reports back to 1920. 1970s cocoa is so similar to today (drought in West Africa, limited incremental supply) But chocolate demand is relatively inelastic - yeah margins compressed, but $HSY growth rate / EPS surged if you hung on https://t.co/k3IHY7Q3zk https://t.co/tOJaCtvnkm https://t.co/Eix5c1Y0to
Oil trader Pierre Andurand’s hedge fund bet on higher cocoa prices ahead of a massive surge last month - Bloomberg Before or after?
Cocoa prices are down >40% from their recent record high. As we at @Opinion warned in this piece published in late March, financial factors, rather than supply-and-demand, explained the big price rally from mid-March to mid-April. That's now reversing. https://t.co/fCTLdG8Tuk