Sugar futures fell, extending a slide to the lowest level in almost 11 weeks, after the dollar climbed, eroding the appeal commodities as alternative assets.
The euro was little changed against the dollar after approaching a nine-month low on budget concerns in Greece. Sugar prices have tumbled 8.7 percent this week. The Reuters/Jefferies CRB Index of 19 raw materials fell as much as 2 percent today.
“The dollar strengthening is definitely playing a part in pushing sugar and other commodities down,” said Jimmy Tintle, an analyst at Transworld Futures in Tampa, Florida. “Sugar will trade weak in the next two to three sessions.”
Raw-sugar futures for May delivery declined 0.7 cent, or 2.9 percent, to 23.7 cents a pound on ICE Futures U.S. in New York. Earlier, the price touched 23.4 cents, the lowest level since Dec. 11. The most-active contract has dropped 21 percent this month.
The price may fall to 23 cents, Tintle said. Sugar doubled last year as adverse weather in Brazil and India, the world’s biggest producers, curbed output.
Debarati Roy
Bloomberg
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