Thursday closed up +474 (+4.53%), and March ICE London cocoa #7 (CAH25) closed up +289 (+3.39%). Cocoa prices rallied sharply Thursday 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.

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,

Cocoa futures surged, reversing losses from the prior session, on news that chocolate maker Hershey Co. is seeking permission for a large purchase through the New York exchange.

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.

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.

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.