Hershey causes a stir: Request for record cocoa purchase

The well-known chocolate manufacturer Hershey has requested permission from the Commodity Futures Trading Commission (CFTC) to purchase an exceptionally large quantity of cocoa from the ICE exchange's stocks. According to reports, Hershey plans to buy up to 90,000 tons of cocoa using futures contracts, which equates to 9,000 contracts. The current limit for such positions is 4,900 contracts. Hershey did not comment specifically on the application, however, emphasized that the demand for the year 2025 is already well covered. Despite this news, Hershey's stock fell by 2.6% in late trading. The CFTC, as the leading regulator for futures trading in the United States, declined to comment. According to Bloomberg, Hershey is being advised on the application by Joshua Sterling, a lawyer from the firm Milbank LLP and a former CFTC employee. Sterling refused to comment. A U.S. cocoa broker warned that approval of the application could deplete the ICE-certified cocoa stocks, both in New York and London. Currently, stocks in New York amount to about 61,000 tons and those in London to 21,000 tons. However, a second broker from New York doubts that the trade will go through and does not expect the CFTC to grant an exception for the requested 9,000 contracts.