An account of the cocoa market: producers, manufacturers, traders, and speculators

myp · May 27, 2011

Check out this piece on the cocoa market and how a speculator recently tried to corner the market. It is an excellent read as it covers the major sides of modern commodity markets.

http://www.spiegel.de/international/business/0,1518,759471,00.html

The resiliency of markets and the price mechanism can really be seen with what Glover is trying to do and the lessons Nauck likely learned about making sure he has his supply ready at his price in advance.

DodgeFB · May 28, 2011

This "speculator" is almost as bad as gas speculators. I think they are parasites. They really add nothing to the product. Just drive up the prices and bleed the customers. I think speculators should be required to take delivery of the product and pay for it. Not just shuffle papers and get rich.

myp · May 28, 2011

DodgeFB said:
This "speculator" is almost as bad as gas speculators. I think they are parasites. They really add nothing to the product. Just drive up the prices and bleed the customers. I think speculators should be required to take delivery of the product and pay for it. Not just shuffle papers and get rich.

I am not sure I agree. I have not made up my mind on speculators yet, but examples of like this show that the market can come up with its own solutions if given the chance. I really think that the speculation market, which has been booming of late, will eventually get countered by the actions of people like Glover and that will be a good thing for most people. Oh, and in this case the speculator did take delivery and pay for it. Then he waited and sold it.

DodgeFB · May 28, 2011

myp said:
I am not sure I agree. I have not made up my mind on speculators yet, but examples of like this show that the market can come up with its own solutions if given the chance. I really think that the speculation market, which has been booming of late, will eventually get countered by the actions of people like Glover and that will be a good thing for most people. Oh, and in this case the speculator did take delivery and pay for it. Then he waited and sold it.

Fair enough. I just look forward to some of them getting stuck with the "product" and having to take the loss. They need to be on the other end of it at some time. Because they have no problem sticking it to people daily.

An account of the cocoa market: producers, manufacturers, traders, and speculators

myp

DodgeFB

myp

DodgeFB

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