US benchmark cocoa futures finished about 1.5 percent weaker on Tuesday, pressured by speculator and fund selling amid a rising dollar and flagging bean prices in the UK market, traders said.
The New York Board of Trade's active cocoa contract for December delivery fell $22 to settle at $1,406 a tonne, after trading from $1,391 to $1,410. The bottom trade was the weakest for the contract since August 22. March lost $20 at $1,437 a tonne, and deferred deliveries ended down $18 to $19 on the day. Traders said market players were focused on currency arbitrage positioning against London's cocoa market, because the pound was trading at a three-week low against the dollar.