Hershey Co (NYSE: HSY) has voiced concerns about the ICE New York cocoa futures market, arguing that it no longer accurately reflects the real-world cocoa market conditions, according to Reuters.

Key Issues Highlighted by Hershey
? Disconnect Between Futures and Physical Market

Hershey claims that ICE’s actions have led to a liquidity decline and price volatility.

? High Margin Calls Driving Away Participants

Tricia Brannigan, Hershey’s Vice President for Procurement, stated that increased margin calls are discouraging commercial traders, reducing open interest in the market.

? Speculator Influence Under Scrutiny

Brannigan urged ICE to examine speculative activity, suggesting it may be exacerbating price instability.
No specific evidence was provided, but Hershey is concerned about the potential market manipulation risks.

Cocoa Market Outlook
? Cocoa prices remain high, with ICE New York cocoa futures surging due to supply chain disruptions and rising demand.? Hershey and other chocolate manufacturers may face further cost pressures if volatility continues.? Potential ICE regulatory review could lead to market adjustments in the coming months.

Investor Insights
For deeper market analysis, check out:

Commodities API – Track cocoa price movements and market trends.
SEC Filings API – Monitor Hershey’s regulatory disclosures for financial impact.

Bottom Line: Hershey’s concerns highlight potential inefficiencies in the cocoa futures market, which could affect commodity pricing strategies for major chocolate producers.