Sugar Declines as Dollar Resumes Rally, Curbs Commodity Demand

By Ron Day

Sept. 10 (Bloomberg) -- Sugar fell for a fourth straight day as the dollar resumed a rally that began in July, damping demand for raw materials priced in the U.S. currency.

The dollar gained against the euro for the ninth day out of 10, boosting the costs of commodities for buyers using the European currency. The euro slid after the European Commission cut its growth estimate for this year and predicted a recession for the German economy, the region's largest.

Raw-sugar futures for March delivery, which became the most-active contract today, fell 0.07 cent, or 0.5 percent, to 13.78 cents a pound at 8:50 a.m. on ICE Futures U.S., the former New York Board of Trade.

Sugar for October delivery, previously the most-active contract, fell 0.01 cent, or 0.1 percent, to 12.09 cents a pound, after earlier reaching 11.98 cents, the contract's lowest price since July 24.

To contact the reporter on this story: Ron Day in New York at rday1@bloomberg.net.