That’s a lot of chocolate
A hedge fund bought $1 billion worth of cocoa beans last week, leading to rumors it was trying to corner the market and drive prices up. But…
Analysts believe Mr. Ward ended up on the wrong side of a private hedging arrangement with Swiss chocolate-maker Barry Callebaut AG. As a result, Mr. Ward’s firm, Armajaro Asset Management LLP, had to buy about 241,000 tonnes of beans last Friday on the NYSE Liffe, or London International Financial Futures Exchange.
The purchase was the second-largest ever on the exchange – and it was enough cocoa to make five billion chocolate bars. On Monday, reports surfaced that roughly half the cocoa had been sent off to Barry Callebaut and it is expected that most of the remainder will head to other candy-makers who had similar deals with Armajaro.
If you don’t cover a commodity futures contract, you end up owning the underlying commodity.
8:27pm 
