Cocoa futures reduce weekly decline; traders assess demand outlook.

Cocoa futures rebounded from an eight-month low as traders evaluated changes in grinding data in major consumption regions. New York's most active cocoa futures contract rose as much as 5.8% to $7,735 per ton, helping to narrow the week's decline to about 7%. Cocoa futures have been under pressure this week as the market considers the extent of demand destruction after cocoa prices reached historic highs. On Thursday, cocoa grinding volumes in Europe and Asia dropped by 7.2% and 16% respectively. Morgan Stanley agricultural strategist Tracey Allen noted that cocoa powder grinding volumes in North America performed better, only declining by 2.8% in the second quarter, highlighting regional demand differences.