NEW YORK (Reuters) – Chocolate maker Hershey Co said ICE New York cocoa futures market is disconnected from the reality of the global physical market due to the exchange’s actions that led to lack of liquidity and increased volatility.
Hershey’s Vice President for Procurement Tricia Brannigan told Reuters on Tuesday that high margin calls on ICE’s cocoa futures market drove commercial players away, reducing open interest and causing sharp price swings. She asked ICE to investigate speculators’ activities for any disruptive behavior.
(Reporting by Marcelo Teixeira)
Comments