Cocoa Falls Most in a Week on Europe’s Debt WoesOliver Renick
Cocoa futures fell the most in a week on concern that persistent debt woes will erode demand in Europe, the world’s biggest chocolate consumer. Sugar and orange juice also slid, while coffee and cotton advanced.
Italy’s equities and bonds fell on an election deadlock, and the cost of insuring the nation’s debt against default climbed to the highest in 2013.
“With Europe being such a large consumer of chocolate, problems there are going to take any bullish ideas off the table for the time being” for cocoa, Sterling Smith, a futures specialist at Citigroup Inc. in Chicago, said in a telephone interview.
Cocoa for May delivery fell 0.8 percent to settle at $2,125 a metric ton at 2:00 p.m. on ICE Futures U.S. in New York, the biggest drop since Feb. 19. Earlier, the price touched $2,108, the lowest since June 25.
Raw-sugar futures for May delivery slid 0.2 percent to 18.05 cents a pound.
Orange-juice futures for May delivery slumped 1.9 percent to $1.2725 a pound.
Florida’s citrus belt will get below-normal temperatures for two weeks starting today, potentially threatening crops, according to MDA Information Systems Inc. in Gaithersburg, Maryland. Brazil is the largest orange grower, followed by Florida.
Coffee futures for May delivery gained 0.3 percent to $1.435 a pound.
Cotton futures for May delivery advanced 0.1 percent to 81.83 cents a pound.