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EC SD | Crazy spike, but careful jumping in on either side of it...
Apparently the cocoa plantations in Africa were decimated and not only lost this year's crop, but perhaps the plants have died off. If so, it will take a few years to grow new plants and that will be a long term disruption to the cocoa market. Could the price double again or quadruple even if supply cannot meet demand for a few years?
Like most commodities, it depends on if substitutes are available which are cheaper than the new high prices. If so, then that reduces demand down to supply available, and the price spike will not last long.
A friend once brought back "green bean" flavored candy from a trip to China. Maybe chocolate lovers will decide to switch over to that if chocolate candy gets too expensive. I really doubt it though, because green bean candy is disgusting....
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Holy cocoa puffs!
