Cocoa exports from Nigeria doubled in the second quarter, making investors coo-coo for the cocoa exchange traded note (ETN).

Nigeria is the world’s fourth-largest producer of the key chocolate ingredient, reports Dulue Mbachu for Bloomberg. The stepped-up production was as a result of government incentives. Production could have actually been higher, since the official tally doesn’t account for cocoa smuggled out of the country.

The top three cocoa producers are Ivory Coast, Ghana and Indonesia, according to the International Cocoa Organization. Cocoa prices have been on an overall uptrend in the last year, up 37% in July from a year ago. Prices are now at their highest levels in two months.

Sugar, in particular, is benefiting from a renewed interest in soft commodities. After Tuesday’s gain, sugar continued the upswing and went to a 21-month high, reports Nigel Hunt for Reuters. Arabica futures are turning higher, too, leading to a run-up in coffee prices.

Is anybody else hungry?

  • iPath DJ AIG Coffee TR Sub-Index ETN (JO), up 1.5% since July 8 inception
  • iPath DJ AIG Cocoa TR Sub-Index (NIB), down 4.5% since July 8 inception
  • PowerShares DB Agriculture (DBA), up 11.3% year-to-date (holds 19.1% in sugar futures)
  • UBS E-TRACS CMCI Food (FUD), up 5.6% since April 4 inception (holds sugar, coffee and cocoa)

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.