Why the World of Chocolate Is in Crisis
- Chocolate plants are shutting and market liquidity is tumbling
- Supplies of cocoa beans will trail demand for a third season
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The world of chocolate is facing such immense cocoa shortages that the wild trading lured an unlikely player: Pierre Andurand, a hedge-fund manager best known for his bets on oil.
By early March, prices had already more than doubled in just a 12-month span. At that point, many speculators were calling it quits and slashing their bullish wagers. That’s when Andurand saw an opportunity to go long.