Cocoa futures posted the biggest drop in almost six months on signs of rising supplies in Ivory Coast, the world’s biggest producer. Sugar dropped amid concerns that the debt crisis in Europe will erode commodity demand.
Cocoa deliveries to the Ivory Coast ports of Abidjan and San Pedro from farms rose to 22,622 metric tons in the week ended Oct. 23 from 12,193 tons the previous week, a document obtained from the industry’s regulator showed. Equities and raw materials tumbled after Greek Prime Minister George Papandreou pledged to hold a referendum on Europe’s bailout proposal, threatening to unravel the plan.
In Ivory Coast, “the low arrivals might have been supporting terminal prices, but with export declarations higher, that support seems to have been eroded away,” Keith Flury, an analyst at Rabobank International in London, said in an e-mail.
Cocoa for December delivery dropped 3.6 percent to $2,600 a ton at 2 p.m. on ICE Futures U.S. in New York, the biggest decline for a most-active contract since May 5. The price has fallen 31 percent from a 32-year high of $3,775 on March 4.
Raw-sugar futures for March delivery fell 1.7 percent to 25.34 cents a pound in New York. Earlier, the price touched 25.31 cents, the lowest since Oct. 7.
“Lack of demand is just one negative aspect that is influencing the market,” Michael McDougall, a senior vice president at Newedge Group in New York, said in a report. “The other is the renewed concern on the European sovereign-debt situation.”
In London futures trading, cocoa and refined sugar declined on NYSE Liffe.