Plunging Cocoa Prices Mean You Can Splurge on Christmas Chocolate

Cocoa futures tumble to three-year low on ballooning supply
Hedge funds hold smallest net-bullish position since 2012

MICHENDORF, GERMANY - DECEMBER 06: Chocolate figurines in the form of St. Nicholas, or Santa Claus, stand in rows before they were given to participants in the 7th annual Michendorf Santa Run (7. Michendorfer Nikoauslauf) on December 6, 2015 in Michendorf, Germany. A record 900 runners took part in this year's event, which included 2,5km, 5km and 10km races.
Photographer: Sean Gallup/Getty Images

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By Marvin G Perez

December 11, 2016 at 10:30 PM UTC

Updated on

December 12, 2016 at 2:14 PM UTC

This article is for subscribers only.

Cocoa prices are spiraling lower, making chocolate cheaper just in time to stuff those Christmas stockings even more full of treats.

Futures in New York have tumbled to a three-year low as rains improve crops in West Africa, which grows more than two-thirds of the world’s cocoa each season. The output gains mean the market is shifting from a production deficit to the biggest surplus in six years, according to Citigroup Inc.