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Barchart
Barchart
Rich Asplund

Cocoa Prices Close Lower as the Dollar Strengthens

December ICE NY cocoa (CCZ24) Monday closed down -124 (-1.60%), and December ICE London cocoa #7 (CAZ24) closed down -1 (-0.02%).

On Monday, cocoa prices gave up an early advance and turned lower after the dollar index (DXY00) rallied to a 2-month high, which sparked long liquidation in cocoa futures.  Cocoa prices on Monday initially moved higher as heavy rain in West Africa caused flooding and kept cocoa farmers out of their fields, delaying harvest.  Also, the heavy rain makes it harder to dry harvested beans, lowering their quality.

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