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Barchart
Barchart
Rich Asplund

Cocoa Prices Finish Sharply Lower as Dollar Strength Sparks Long Liquidation

July ICE NY cocoa (CCN24) on Friday closed down -516 (-4.77%), and July ICE London cocoa #7 (CAN24) closed down -198 (-2.19%).

Cocoa prices Friday finished sharply lower.  After the dollar index (DXY00) rallied to a 6-week high Friday, long liquidation emerged in cocoa futures.  Also, heightened political turmoil in France led to a risk-off mood in asset markets Friday and weighed on cocoa prices.  Losses in London cocoa were limited after the British pound (^GBPUSD) fell to a 4-week low, which boosts cocoa that is priced in terms of sterling.

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