London cocoa came under additional pressure on Friday, with the front-month contract falling more than 7.6% to settle at a little over GBP7,300/t, ING’s commodity analysts Warren Patterson and Ewa Manthey notes.

Prices remain historically high

"This is the lowest level since November. However, prices remain historically high, raising concerns over demand destruction. Given the tightness in the cocoa market, demand destruction may help return some balance to the market. Prices are likely to continue trading in a volatile manner."

"Weekly positioning data from the CFTC show money managers trimmed their net short position in wheat by 21,232 lots to 61,577 lots as of 18 February. The move was mostly driven by short covering, with gross shorts decreasing by 26,733 lots to 132,334 lots. As for corn, managed money net longs rose by 21,144 lots to 353,533 lots over the last reporting week."