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Sugar Tumbles on China’s Move to Curb Inflation; Cocoa Drops

Sugar tumbled more than 7 percent on concern that demand for commodities may decline in China after the government took more steps to curb inflation. Cocoa fell, and coffee was little changed.

China will increase the ratio requirement for banks by 50 basis points starting Nov. 29. The Thomson Reuters/Jefferies CRB Index of 19 raw materials declined as much as 1.4 percent. On Nov. 12, sugar plunged 12 percent, the most since July 1988, partly on concern that China would raise lending rates. Yesterday, the price jumped 6.3 percent on supply concerns.