Sugar Reverses Four-Year High Amid Broader Commodities Decline
(Bloomberg) -- Raw sugar reversed gains in New York after climbing near the highest in more than four years on speculation that frost in Brazil won’t do as much damage as feared and amid a broader selloff in oil and other agricultural commodities.
Oil fell back from a six-year high amid a rising dollar and uncertainty over OPEC+’s failure to ratify an agreement, pressuring ethanol values. The Bloomberg Dollar Spot Index rose the most in two weeks, making commodities priced in the dollar less attractive to investors. Corn futures in Chicago fell by the most allowed by the exchange.
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There’s also a perception that the recent freezing temperatures in the past week weren’t so severe for cane fields, Bruno Lima, sugar head at StoneX in Brazil said in a text message.
Raw sugar for October delivery fell as much as 1.8% and was down 0.9% to 17.99 cents a pound on ICE Futures U.S. in New York as of 12:45 p.m., the first decline in four sessions. Earlier, prices touched 18.43 cents, near the highest since March 2017 for a most-active contract. Futures have surged more than 50% in the past year after drought curbed Brazilian crop prospects.
In other soft commodities, arabica coffee for September delivery dropped for a fifth day, falling 3.2% to $1.482 a pound. Cotton and cocoa also slid in New York.
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