Follow the Easter Bunny not Buffet? (Copy)

Is it time to Stock Up on Easter Chocolates

· Here’s something to ponder – is it wrong to make fun of people who go to their local supermarket to buy up all the discounted Easter eggs that they can find?  Because the way that cocoa prices are rising at this stage, it might turn out that a Dairy Milk bar will turn out to be a better store of value than a gold bar.

· The cocoa market appears to be in crisis. Cocoa futures contracts (for May delivery) have surged to an all-time intraday high of $10,080 per metric ton. The spot price finished at U$9,285 on 26 March, and has more than doubled so far this year.  The world faces the worst supply deficit in more than 60 years, with farmers in West Africa struggling with bad weather, disease, and failing crops/trees.

· Although the large chocolate companies were well-hedged last year, and therefore did not immediately pass on higher prices to consumers, there is only so much the industry can do to absorb costs.  Either prices will have to go up, or the size of your favourite bar will continue to shrink.  It might not take  long before Twix only has one stick inside the wrapper.