Delicious Stocks
Let’s take a closer look at investing in cocoa
A commodity that’s not only a treat for our taste buds but also interesting from an investor’s point of view.
Cocoa has been performing impressively, standing out among other commodities. Last year, cacao gained 70%, and this year, it is already up more than 100%.
Behind the scenes, cocoa farmers are facing significant challenges. From unpredictable weather patterns to economic pressures, farmers annually earn, on average, only 2500 dollars. A cocoa tree takes five years to grow from a seed to a tree; so it’s not always easy for them to keep up with demand, and the kilo prices are defined in October, so they could miss opportunities. Understanding these challenges is essential for anyone considering investing in cocoa.
How to invest in the cocoa market
Exchange-traded commodities (ETCs) that track cocoa prices can be an interesting option for investors for several reasons. Firstly, they provide a straightforward and accessible way to gain exposure to the cocoa market without the complexities of directly trading futures contracts. An example of one of these is the Wisdom Tree Cocoa ETC. This accessibility empowers investors to explore the cocoa market, knowing they have a reliable and straightforward investment tool at their disposal.
Some bad news for chocolate lovers; the easter eggs were already 20% higher, further highlighting the dynamics in the cocoa market. So, whether you’re a seasoned investor or just getting started, cocoa presents an exciting opportunity to explore.
Feel free to come to Hugo’s in Marbella anytime to discuss the cocoa market or any other sector. I look forward to discussing your investment strategy with you.
Take a peak at our latest vlog on this subject below to learn more!
Kaspar Huijsman
‘’It’s a jungle out there, Trade Saf€’’
Vlogger at https://www.youtube.com/c/hugoinvesting
Podcast https://open.spotify.com/show/6ZsgB344CImYjkvNX1lc3w
Founder of https://hugoinvesting.com/
Founder of https://academy-for-investors.com/
LinkedIN https://www.linkedin.com/in/kasparhuijsman/
Former CEO BinckBank Spain https://www.binckbank.com/hugoinvesting
Former CEO Saxo Bank Spain https://www.home.saxo/about-us
Co-founder Alex Beleggersbank https://nl.wikipedia.org/wiki/Alex_(bank)
The information in this article should not be interpreted as individual investment advice. Although Hugo compiles and maintains these pages from reliable sources, Hugo cannot guarantee that the information is accurate, complete and up-to-date. Any information used from this article without prior verification or advice, is at your own risk. We advise that you only invest in products that fit your knowledge and experience and do not invest in financial instruments where you do not understand the risks.
