(Bloomberg) -- US cocoa futures relinquished almost all their gains from earlier Wednesday, with hedge funds exiting bullish bets after a rally that sent prices surging as much as 20% in the past two days. 

In another example of how the hottest commodity market this year continues to grapple with wild volatility, contracts of the chocolate ingredient for July delivery fluctuated between gains of as much as 5.4% and losses of as much as 2% in New York on Wednesday. 

“The market has topped out and speculators are using rallies to get out,” Jack Scoville, vice president of Price Futures Group, said in an interview. While cocoa has found renewed buying interest near $7,000 per metric ton, prompting the latest rally, prices are likely to gradually retreat to levels closer to $5,000 per ton, he added. 

Read More: Cocoa Rally Is Spilling Into Coffee as Traders Run Out of Cash

Cocoa prices have skyrocketed to unprecedented highs this year due to a global shortage of beans. Still, big chocolate companies such as Toblerone and Oreo maker Mondelez International Inc. say current levels are inflated and don’t reflect the true physical situation. On the supply side, recent rain in West Africa eased worries about the mid-crop, while farmers remain concerned about damage caused by previous heat, according to the Hightower Report. Cocoa stockpiles held at US ports have also been falling, and are at a three-year low.

Read More: Hershey, Mondelez See Cocoa Prices Detached From Fundamentals

Meanwhile, sugar prices fell as much as 2.2% in New York as a stronger dollar prompted some producer selling from Brazil, according to Scoville. 

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