Trader’s Cocoa Binge Wraps Up Chocolate Market

From NYT:

LONDON — To some, he is a real-life Willy Wonka. To others, he is a Bond-style villain bent on taking over the world’s supply of chocolate. In a stroke, a hedge fund manager here named Anthony Ward has all but cornered the market in cocoa. By one estimate, he has bought enough to make more than five billion chocolate bars. Chocolate lovers here are crying into their Cadbury wrappers — and rival traders are crying foul, saying Mr. Ward is stockpiling cocoa in a bid to drive up already high prices so he can sell later at a big profit. His activities have helped drive cocoa prices on the London market to a 30-year high.

Let me get this straight. One guy bets his left nut to try and make a buck and “rival traders” sit back like sheep complaining that he is trying to make money? What are they trying to do? Lose money? The article continues:

Mr. Ward keep tabs on major cocoa crops. [He says:] “We even have our own weather stations — our very own that no one else has in some parts of the world…”

You don’t need weather stations to trade cocoa. You just need the ‘price.’

4 thoughts on “Trader’s Cocoa Binge Wraps Up Chocolate Market

  1. These people don’t get it. I don’t recall any guy who has alone “cornered” the market and then exited it with the full profits. Either the guy were right – caught the trend – before the others and was able to get out of the position when the rest of the crowd bought, or it is all a big paper profit that will later vanished. There’s no “cornering” the market by buying or selling too much. Try Nick Leeson…

  2. Ownes a load of cocoa and needs some excitement on the buy side so he can unload. Or he’s just another corner artist who’s gonna get killed in the end. Trends will be the result of his folly.

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