Hershey (HSY) is seeking permission from the US Commodity Futures Trading Commission to buy more than 90,000 metric tons of cocoa on ICE Futures US, Bloomberg reported, citing people familiar with the situation.
The volume sought by the chocolate maker, equivalent to about 5,000 20-foot containers, is more than nine times the amount allowed by the exchange and exceeds the federal position limit of 49,000 tons, according to the report.
Hershey's planned cocoa purchase is roughly equal to all beans certified for delivery against futures contracts in New York, and a larger position limit would potentially drive up prices, Bloomberg said.
Hershey has a "rigorous" procurement process and is "well-covered" on its 2025 cocoa requirements, a Hershey's spokesperson told Bloomberg, while CFTC and the Intercontinental Exchange (ICE) declined Bloomberg's comment requests.
Hershey, CFTC, and ICE didn't immediately respond to a request for comment from MT Newswires.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Price: 161.67, Change: -3.85, Percent Change: -2.33
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.