LONDON, June 30 (Reuters) - Funds are doubling down on bets for higher cocoa prices, seeing little reason to exit or even limit a trade that is making them healthy returns and leaving chocolate makers in despair as prices for the bean soar to 46 year highs.

The rally, traders say, has become self-perpetuating, and with little end in sight in the near term, chocolate makers are being forced to consider raising prices of the sweet treat yet again.

"It's a vacuum situation on the upside. We have (almost no one) selling into (the price rally)," said a Europe-based trader at one of the world's largest soft commodities trade houses.

He explained that Ivory Coast and Ghana, who together produce two-thirds of the world's cocoa, have almost finished forward selling their upcoming 2023/24 (October to September) cocoa crop.

They are the market's natural sellers and their near absence leaves funds with outsize market influence.

Thanks to both an actual global supply deficit and a major cocoa merchant who traders believe is holding onto stock in a bid to drive up prices, these funds see a market that appears even more short supplied than it is.

As a consequence, they are by and large loath to bet on falling cocoa prices, leaving the market with a dearth of both physical and fund participants whose trading activities are calming the rally.

"The real shortage is not as severe as it seems. It's not like we have to stop chocolate production, and sooner or later these prices will have an impact on consumption," said a separate Europe-based trader.

Cocoa consumption, as measured by cocoa 'grind' data, has historically fallen when prices soar, primarily because chocolate makers tend to lower the amount of beans in their bars or produce smaller bars in response.

There can, however, be a time lag before the grind data reflects weakening demand for chocolate as companies such as Nestle and Hershey tend to buy cocoa products months in advance.

"The entire market is waiting for a signal on consumption but the (upcoming) second quarter grind (data) will not show a reduction, so this situation can continue all the way to the start of the new crop in October," said the first trader cited above.

"There won't (until then) be enough bad news to (persuade the funds) that it's the end of the road".

(Reporting by Maytaal Angel; Editing by Nigel Hunt and Aurora Ellis)