Investment funds buying of cocoa futures are forcing cocoa prices up and damaging chocolate makers, the association of German confectionery producers BDSI said on Thursday. "The BDSI condemns the speculative investment by banks and funds in agricultural commodities which the food industry needs for its production," the association said in a statement. "While this commodity is currently at its most expensive level in 30 years, the price competition in German retailing makes it difficult to pass on this cost rise in an industry characterised by mid-sized companies," the BDSI said.

London cocoa futures hit 32-year-highs hit in January but have since fallen by about 20 percent. 

The BDSI said it believed cocoa prices were likely to continue their fall as the global cocoa crop remains constant while chocolate consumption is falling. All fundamental data indicate that the cocoa commodity bubble will soon burst.