Team McCallum

R&D for Lifetime of Life

Buy chocolate?

On Friday, hedge fund Armajaro bought 241,000 tonnes of cocoa beans, worth £660 million (US$ 1 billion), in the biggest purchase on the London International Financial Futures and Options Exchange (Liffe) for 14 years.

The purchase accounts for about 7% of global annual production. According to the International Cocoa Organization, stocks usually average about 45% of annual production, so Armajaro has cornered a significant chunk of the reserves.

Stocks normally decline to a September low as manufacturers start production for Xmas and before the next crop from Africa.

Armajaro is betting on a spike in cocoa prices, and chocolate will follow suit. Is it time to lay in some supplies? 🙂

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July 18, 2010 - Posted by | Chocolate, Diet, Fun, News, Success |

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