Odd Lots Pierre Andurand Says the World Could Run Out of Cocoa Inventories
22 snips
May 16, 2024 
Pierre Andurand, founder of Andurand Capital Management and a renowned expert in commodity trading, dives into the volatile cocoa market and its soaring prices, recently hitting a record $12,000 per ton. He discusses how climate issues and geopolitical factors are creating significant supply shortages. Andurand also shares insights on other commodities like coffee, orange juice, and copper, predicting similar structural shortages that could affect pricing. His analysis reveals the intricate relationships between commodity dynamics and global market trends.
AI Snips
Chapters
Transcript
Episode notes
Inelastic Cocoa Demand
- Cocoa demand is inelastic due to low cost per consumer.
- Even significant price increases have minimal impact on daily consumption.
Structural Cocoa Challenges
- Cocoa production faces structural challenges beyond weather, like diseases and fertilizer usage.
- These factors contribute to long-term supply issues.
Data Discrepancy
- Compared to oil, cocoa has less robust and readily available market data.
- This can create opportunities for traders to uncover hidden trends.