ICE NY cocoa (CCH25) today is up +466 (+4.46%), and March ICE London cocoa #7 (CAH25) is up +287 (+3.37%). Cocoa prices today are sharply higher as chocolate maker Hershey Co. is seeking CFTC approval to buy a large amount of cocoa through the ICE Futures Exchange due to tight global supplies.

Hershey Co. (NYSE: HSY) is seeking US regulatory approval to make a massive cocoa purchase that would exceed standard trading limits by nine times as global shortages drive prices to record highs, according to Bloomberg News which cited sources familiar with the discussions.

Chocolate maker Hershey Co has requested permission from the Commodity Futures Trading Commission (CFTC) to buy an amount of cocoa from the stocks of ICE exchange that is much larger than the maximum allowed,

Hershey Co.’s decision to stockpile cocoa from the exchange instead of the physical market helps hedge against potential supply issues in 2025. The company’s shares dropped 12% year-to-date in 2024, likely due to ongoing cocoa supply challenges and bearish momentum since April 2023.

Hershey Co. is asking the US’s top derivatives regulator for permission to buy a huge amount of cocoa through the New York exchange after global shortages sent prices to a record, according to people familiar with the matter.

To mitigate the potential impact from a persistent shortage of supply, Hershey (NYSE:HSY) has asked the Commodity Futures Trading Commission (“CFTC”) for permission to take a position in the futures market that would enable the company to buy a substantial amount of cocoa.