Yesterday, I mentioned that the massive purchase of cocoa that took place yesterday in London reminded me of the attempts to corner commodities markets in the late 1800s. Today, the UK’s Telegraph makes it explicit. Citing unnamed experts, the paper reports that “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.”
Then MSN reported that the hedge fund actually has a name. It’s Armajaro, both a global cocoa broker and the operator of several hedge funds. Later Wall Street Journal Online reported that BNP Paris Bas and nine other brokers took possession of the cocoa. Ah, confusion. That’s what a corner is all about.
Wow, it’s like in the days of the robber barons.
