NEW YORK, Jan 8 (Reuters) - Chocolate maker Hershey Co ( HSY )

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, a report said on Wednesday.

According to a report from Bloomberg News, Hershey wants to

receive as much as 90,000 metric tons of cocoa from ICE

certified stocks using futures contracts, which would equal

9,000 contracts. The current position limit set by CFTC is 4,900

contracts.

Hershey did not confirm or deny having made the request. The

company said that it is "well covered" for its cocoa needs for

2025 in response to a Reuters request for comment. Hershey

shares were falling 2.6% on late trading on Wednesday.

The CFTC, which is the top U.S. regulator for futures

trading, declined to comment.

The Bloomberg report said lawyer Joshua Sterling from law

firm Milbank LLP was working for Hershey regarding the request

to the CFTC. Sterling, a former CFTC official, declined to

comment.

A U.S. cocoa broker said that a potential clearance by the

CFTC for that amount of buying would empty ICE certified cocoa

stocks, considering both the volumes in ICE New York and the

amount stored in London.

ICE New York stocks are currently at around 61,000 tons,

while London stocks are close to 21,000 tons.

"It would take certs to zero and more than likely further

dry out liquidity (in the futures market)," said the broker,

adding that the potential move would be negative for other

market participants.

A second broker, working for a New York firm, does not

expect the trade to go ahead.

"I don't think the CFTC will grant them - or anyone - a

9,000 lots exemption," he said.