Breakfast haters unite?

Photo courtesy: Mr Breakfast

Cocoa Krispies, Hershey's Cocoa Syrup, Cocoa Puffs, hot cocoa... not to mention the legions of other delectable delights that baking cocoa is an integral part of... may soon all be much too expensive for the average family to buy. In a move that made foodies-who-notice-these-things' hearts pitter-patter someone went and bought all the cocoa in Europe in one grand purchase:

The purchase was enough to move the entire global cocoa market, sending the price to the highest level since 1977, and triggering rumours and intrigue in the City.

It is unclear which person, or group of traders, was behind the deal, but it was the largest single cocoa trade for 14 years.

When the story first broke, noone knew who the buyer was. Who in the world would need that much cocoa? Certainly not fox-hunting, tea-sipping, spirited jockeys wearing breeches. It has since come to light that the buyer was a London Hedge Fund but that hasn't reassured those of us who are rather partial to the occasional candybar, or scoop of rocky road ice cream.

More on the Soros-ian move:

The cocoa beans, which are sitting in warehouses either in The Netherlands, Hamburg, or closer to home in London, Liverpool or Humberside is equivalent to the entire supply of the commodity in Europe, and would fill more than five Titanics. They are worth £658 million.

Analysts said it was very unlikely that a chocolate company, such as Nestle or Kraft, or even their suppliers, would buy such a huge order in one go and that is was probable that one or a number of speculators, possibly hedge funds, had attempted to corner the market. By doing this, they would have control of the entire supply in Europe, forcing the price yet higher.

Soros-ian all right. I can only hope that speculation that cocoa growers are becoming fewer will turn around, however artificially, on the news that cocoa is now garnering more per the pound. By the way, how's that BP stock doing these days?