Nov. 29 (Bloomberg) -- Sugar gained for the second straight day on speculation that commodity demand will pick up as U.S. consumer confidence rises and leaders in Europe tackle the region’s debt crisis. Coffee and cocoa fell.
The Standard & Poor’s GSCI index of 24 raw materials increased as much as 1.6 percent as euro-area finance ministers met to discuss insuring a portion of bonds issued by debt- stricken countries. Consumer confidence in the U.S. unexpectedly rose this month by the most in more than eight years, according to the Conference Board.
“The market is getting some real good news, and there’s finally some optimism out there on Europe,” Michael Smith, the president of T&K Futures & Options in Port St. Lucie, Florida, said in a telephone interview. “The worst may be over” for declines in commodities, he said.
Raw sugar for March delivery climbed 1.6 percent to settle at 23.49 cents a pound at 2 p.m. on ICE Futures U.S. in New York. The price, which climbed 1 percent yesterday, has dropped 8.8 percent this month.
Arabica-coffee futures for March delivery fell 0.1 percent to $2.2755 a pound in New York. The price dropped for the sixth straight session, the longest slump since July. The commodity has tumbled 21 percent since the end of August.
Cocoa futures for March delivery declined 1.9 percent to $2,320 a metric ton. Earlier, the price touched $2,287, the lowest for a most-active contract since May 14, 2009.
In London futures trading, refined sugar and robusta coffee rose on NYSE Liffe, while cocoa declined.
--With assistance from Timothy R. Homan in Washington. Editors: Patrick McKiernan, Millie Munshi
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