Investing.com -- Chocolate manufacturer Hershey Co (NYSE:HSY) has recently expressed concerns over the state of the ICE (NYSE:ICE) New York cocoa futures market, claiming that it does not accurately reflect the global physical market’s actual conditions, according to Reuters. The company attributes this disconnect to the exchange’s actions, which have reportedly caused a decrease in liquidity and an increase in volatility.
Tricia Brannigan, Hershey’s Vice President for Procurement, stated on Tuesday that the high margin calls on the ICE’s cocoa futures market have been driving away commercial participants. This has led to a reduction in open interest, which in turn has caused significant fluctuations in prices.
Brannigan has called on ICE to look into the activities of speculators, suggesting that their actions may be causing disruption in the market. She has not provided any specific details or evidence to support these claims, but her statements indicate a level of concern within Hershey Co about the current state of the cocoa futures market.
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