Cocoa hasn't spent a lot of time up here, we like limited-risk bearish plays.
Cocoa has rallied in this manner a handful of times historically but it has never been able to sustain these prices. Knowing the commodity chaos that has been standard for 2020 through 2023, we aren't willing to suggest short calls or futures, but buying puts makes sense. When the rally cracks, it could fall hard.
We see 3300 as an area for normal back and fill but a break below that level would open the door to the mid-to-high-2000s.
