Commodities
Chocolatiers Burned by Cocoa Rally Still Need to Rebuild Hedges
Global chocolate makers waiting to see just how far bean prices would fall before making their next moves are realizing they may have missed the boat.
An employee prepares cocoa beans for roasting.
Photographer: Cyril Marcilhacy/BloombergThis article is for subscribers only.
It looked like cocoa supplies were improving earlier this season after the worst deficit ever, giving chocolatiers paying through the nose for beans an incentive to sit out and wait for lower prices. That respite proved short-lived.
After a brief stint of softening prices, cocoa has rapidly resumed its upward climb. On Tuesday, New York futures rose as much as 3.5% to $9,282 a ton. Since their recent October low, cocoa prices are up more than 45%.