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Barchart
Barchart
Rich Asplund

Cocoa Prices Slide as a Stronger Dollar Prompts Long Liquidation

December ICE NY cocoa (CCZ24) Tuesday closed down -147 (-1.89%), and December ICE London cocoa #7 (CAZ24) closed down -116 (-2.15%).

Cocoa prices Tuesday fell sharply after the dollar index (DXY00) recovered from a 3-week low and moved higher, which sparked long liquidation in cocoa futures.  On Monday, cocoa prices rose to a 2-1/2 week high on news of lower cocoa production in the Ivory Coast, the world's largest producer.  Government data Monday showed that Ivory Coast farmers shipped 1.72 MMT of cocoa to ports from October 1 to September 15, down by -28% from the same time last year.  

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