Financial Times FT.com

Hedge funds get taste for cocoa

By Kevin Morrison and Jenny Wiggins

Published: March 19 2007 20:45 | Last updated: March 19 2007 20:45

Hedge funds are placing record bets that cocoa prices will keep rising amid fears over a shortage of cacao beans [used to make cocoa] as dark chocolate becomes more popular and weather problems disrupt supply from the Ivory Coast.

Investor interest in cocoa has overwhelmed the traditional trade buyers and sellers, such as the confectionary and cocoa processing companies, in the cocoa futures market.

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