The chocolate maker said the sky-high cocoa inflation of the past two years has started to ease, but costs still ate into its third-quarter profit.

The Hershey Company’s Q3 sales remain strong despite cocoa inflation. Click for why HSY stock could see 23% upside and how cocoa prices may shape future earnings.

December ICE NY cocoa (CCZ25) on Thursday closed up +14 (+0.23%), and December ICE London cocoa #7 (CAZ25) closed up +19 (+0.44%). Cocoa prices recovered from early losses on Thursday and settled higher as shrinking ICE cocoa inventories sparked short covering in cocoa futures.

Cocoa prices dropped with the market pressured by expectation for a global supply surplus on the back of favorable West African harvests.

Monsoon Chocolate Founder Adam Krantz says they've had to raise prices on their product, but it still isn't enough to offset high production costs.

Of all the reasons why reports of a worldwide cocoa shortage should be cause for concern, top of the list is surely the recent edit to the lyrics of one of the greatest jingles of all time.

London cocoa prices posted the biggest intraday gain since August, with traders likely covering huge bearish positions after a briefer-than-expected delay to EU deforestation laws and concerns over Ivory Coast supplies.

"So, if you're choosing between us and a franchise — or your favorite downtown coffee shop and a franchise — please choose local because they really need it."

Americans are expected to spend a record $13.1 billion on Halloween this year due to bigger celebrations but also higher prices.

Mondelez International, Inc. stock is undervalued as cocoa prices fall, signaling earnings recovery and 38% upside potential. Click for my updated look at MDLZ.