Hedge Funds Cocoa Price
Hedge Funds Up Bullish Cocoa Bets Amid Ivory Coast Troubles
Hedge funds are the most bullish on cocoa futures in almost seven months as political turmoil threatens supplies from Ivory Coast, the world’s biggest producer, and prices jumped to the highest since 1979.
In the week ended Feb. 15, hedge funds and money managers increased their net-long positions, or bets on rising prices, by 11 percent to 20,936 futures and options contracts, the highest since July, U.S. Commodity Futures Trading Commission data show. The holdings have more than doubled in the past month.
Alassane Ouattara, the internationally recognized winner of Ivory Coast’s Nov. 28 elections, told exporters to halt cocoa shipments until Feb. 23 in a bid to cut off funds to his rival. Prices surged to a 32-year high last week. The political stalemate entered its third month as Laurent Gbagbo, the incumbent president who has ruled for a decade, refused to cede power. Source