Cocoa is in a sweeter spot than Sugar


Commodity investors in the sessions today traded products that are playing to the advantage of the Chocolate lovers.

For the past ten consecutive weeks, the investors in the exchange traded products or ETPs, have raised their exposure towards trading with Cocoa which has lifted assets investment in cocoa ETPs to $83 million, which was up from some $27 million, according to data demo ETF securities and has claimed a 99% share of trading in the exchange traded products in Europe.

The reason why cocoa futures is getting much attention in lately is that there is a big amount of retail Investors that are investing  through ETPs, which allows investors to gain exposure to the financial markets.

Cocoa might have been pushed forward by an Italian ETP-investing set which is big “big in coffee”, which is also commodity that punches above its management of $84 million, according to the ETFs securities.

While coffee is fitting fixation for a country which has given us products like Lavazza, it may have gotten into cocoa too in which coffee has some association and commercial crossover.

The trouble for the ETP cocoa-philies is that they would not appear to be making money, at the moment.

Yet prices of exchange traded cocoa products have struggled, as they have on futures markets, dropping 7.8% over the past month and by 39% in comparison to last year’s numbers.

Besides, with so much of world production reliant on two countries, Cote d’Ivoire and Ghana, that does raise the potential for price volatility.


Leave a Reply

Your email address will not be published.