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.

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.