Trade of the Day: Stockpile Chocolate Bars
The Dairy Milk chocolate bars made by Cadbury, which is owned by Kraft Foods Group, lost weight last year. The company rounded off the corners of the bars, meaning chocaholics got less of their drug of choice even though they paid the same price --a phenomenon dubbed "shrinkflation"by economist Pippa Malmgren.
One reason is that cocoa, the key ingredient in the earthy brown delight, has surged 28 percent in the past year to $3,150 a ton on the ICE Futures exchange amid poor harvests in Africa. Cocoa is set to climb even further, reaching $3,200 by the end of the year and $3,400 by the end of next year, according to forecasts from Citigroup Inc.
So the Trade of the Day is to stockpile chocolate bars -- before rising cocoa prices prompt confectioners to cut corners even more.
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