Hedge Funds Turn Bearish on London Cocoa as Supplies Improve
Better cocoa supplies should help increase global inventories that were drawn down after poor harvests in major West African growers.
Photographer: Cyril Marcilhacy/BloombergHedge funds have turned bearish on London cocoa prices for the first time in three years, in the latest sign that supplies are further improving following a historic crunch that rattled the market.
The shift in positioning — accompanied by money managers cutting bullish bets on New York futures — comes as prices have roughly halved from a peak set in December on expectations of better harvests and warning demand. Output may outpace consumption by about 186,000 tons in the 2025-26 season, more than double the size of the surplus in the current season, a recent Bloomberg survey showed.