March ICE NY cocoa (CCH25) Wednesday closed down -757 (-6.75%), and March ICE London cocoa #7 (CAH25) closed down -494 (-5.48%).
Cocoa prices tumbled to 1-week lows Wednesday and settled sharply lower after Intercontinental Exchange (ICE) took action in an attempt to curb market volatility. Long liquidation emerged in cocoa futures Wednesday after ICE Futures Europe tightened the London cocoa accountability levels, requiring traders to disclose more information about their positions if they exceed certain levels starting January 13. Losses in London cocoa were limited Wednesday after the British pound (^GBPUSD) sank to an 8-1/2 month low. The weaker pound boosts cocoa that is priced in terms of sterling.
