Raw sugar fell to a 10-month low on renewed concern that Europe’s debt crisis will crimp global economic growth, eroding commodity demand. Cocoa dropped, while coffee rose.
U.S. and European equities declined after Intel Corp. and International Business Machines posted the slowest sales growth in years and bad loans surged in Spain. India, the world’s second-biggest sugar producer, will consider allowing mills to export an additional 1 million metric tons next week to ease a surplus, according to an official with direct knowledge of the matter.
“Demand is an issue, and supplies are available,” Jack Scoville, a vice president for Price Futures Group in Chicago, said in an e-mail.
Raw sugar for July delivery sank 2.5 percent to settle at 22.01 cents a pound at 2 p.m. on ICE Futures U.S. in New York. Earlier, prices touched 21.95 cents, the lowest since May 25.
India’s government had already authorized shipments of 3 million tons in the season that began Oct. 1 after output outpaced domestic demand for a second year. A panel of ministers may decide on more exports on April 25, Food Minister K.V. Thomas told reporters in New Delhi today.
Price movements “will depend on what happens in India next week, although the market seems to be anticipating the approval,” Michael McDougall, senior vice president at Newedge Group in New York, said in a telephone interview.
Brazil’s real slid amid bets the central bank will cut interest rates today. The slumping currency may boost the prospects of exports from the country, the biggest shipper and producer, McDougall said.
Cocoa futures for July delivery fell 1.1 percent to $2,257 a metric ton on ICE, snapping a five-session rally, the longest since late October.
Arabica-coffee futures for July delivery rose 0.2 percent to $1.75 a pound in New York, the first gain in four sessions.
In London futures trading, refined sugar and cocoa dropped on NYSE Liffe. Robusta coffee advanced.