"Go Long Cocoa": Goldman Tells Clients "Another Rally" Incoming On Global Bean Supply Fears

Cocoa futures in New York reached fresh record highs on Monday morning amid ongoing global supply concerns, prompting Goldman Sachs to issue a "trade idea" for institutional clients: "Go Long Cocoa."

"Cocoa prices are positioned for significant upside driven by structural supply deficits, under-hedged consumers, and historically low warehouse stocks," Goldman commodity derivatives analyst Hugo Fuentes wrote in a note. 

Fuentes continued, "With limited relief from peripheral origins, aggressive short covering, and room for speculative buying, the market is set for another rally."