Sugar futures fell from an eight- week high on concern that commodity demand will ebb as the global economy falters. Coffee and cocoa also dropped.
Germany’s unemployment in June rose for the fourth month this year, and borrowing costs in Spain and Italy approached the highest in the euro era amid the region’s debt crisis. Sugar climbed in the previous three days after output in the first half of June slumped in Brazil, the world’s biggest producer, as rain hindered the harvest.
The economic woes “certainly helped pressure prices,” Christopher Narayanan, the head of agricultural commodity research at Societe Generale in New York, said in an e-mail.
Raw sugar for October delivery dropped 2 percent to settle at 20.53 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, the price reached 21.39 cents, the highest for a most-active contract since April 30.
The sweetener has tumbled 14 percent since the end of March, heading for the biggest quarterly slide in more than a year.
The Brazilian real slumped to the lowest in five weeks against the dollar, signaling increased producer selling, Jack Scoville, a vice president for Price Futures Group, said in a telephone interview.
Arabica-coffee futures for September delivery declined 1.1 percent to $1.6305 a pound on ICE, extending this year’s plunge to 28 percent.
The commodity “was unable to escape the grasp of the macroeconomic environment,” Joe Scaduto, the president of JPS Commodities LLC, a broker in New York, said in an e-mailed report.
Cocoa futures for September delivery slid 0.1 percent to $2,230 a metric ton in New York, the first loss in three days.
In London futures trading, refined sugar and robusta coffee dropped on NYSE Liffe. Cocoa advanced.
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