Cocoa futures fell from a three-month high influenced by demand concerns.

The price of cocoa has dropped from a three-month high, as the market is concerned that high prices will lead processors to reduce the amount of cocoa beans used, while rainfall in key producing regions will improve crop prospects. In the New York market, the most active contract fell 4.5% at one point to $10,410 per ton, marking the largest intraday drop since May 5. Just last week, cocoa futures rose nearly 19%, marking the largest weekly increase since November last year. Brandon Tay Hoe Lian, CEO of Guan Chong Bhd, Asia's largest cocoa processor, said that the amount of cocoa beans processed into cocoa butter or cocoa powder -- which has been declining in Asia, Europe, and North America over the past two quarters -- is expected to further decrease from July to September.