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Cocoa is putting on a clinic on how high prices cure high prices. After reaching heights no one thought possible, prices have retraced most of their historic rally. While prices were high, consumers, producers, and manufacturers changed their behavior, thereby increasing supply and reducing demand. For instance, manufacturers replaced some cocoa with palm oil in their recipes and reduced the product's size. Some consumers, on the other hand, shifted to non-cocoa sweets, likely breaking some previous habits or addictions. Behavioral changes are why commodities always bust after they boom.
