May ICE NY cocoa (CCK24) on Wednesday closed down -461 (-7.14%), and Mar ICE London cocoa #7 (CAH24) closed down -381 (-6.54%). Cocoa prices Wednesday sold off sharply, as a rally in the dollar index (DXY00) to a 1-week high sparked long liquidation in cocoa futures. Cocoa prices have rallied significantly over the past two months to record highs this week and became extremely overbought, which has fueled some technical selling in cocoa futures. However, cocoa prices have underlying support from concern about global cocoa production and widening global cocoa deficits. Lower cocoa production in…