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Barchart
Barchart
Rich Asplund

Cocoa Prices Sink as Dollar Strength Sparks Long Liquidation

July ICE NY cocoa (CCN24) today is down -527 (-4.88%), and July ICE London cocoa #7 (CAN24) is down -218 (-2.41%).

Cocoa prices today are sharply lower.  Long liquidation emerged in cocoa futures today after the dollar index (DXY00) rallied to a 5-week high.  Also, heightened political turmoil in France has led to a risk-off mood in asset markets today and is weighing 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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