
September ICE NY cocoa (CCU25) on Tuesday closed down -298 (-3.50%), and September ICE London cocoa #7 (CAU25) closed down -134 (-2.40%).
Cocoa prices retreated from 4-week highs Tuesday and sold off sharply after a rally in the dollar index (DXY00) to a 5-week high sparked long liquidation pressures in cocoa futures. Losses in London cocoa futures were contained after the British pound (^GBPUSD) fell to a 2.25-month low. The weaker pound boosts cocoa that is priced in terms of sterling.