Sugar Falls in New York as Lehman Fails, Crude Oil Plummets

By Ron Day

Sept. 15 (Bloomberg) -- Sugar in New York fell as much as 5.6 percent as commodities including crude oil slumped after the bankruptcy filing by Lehman Brothers Holdings Inc.

Lehman Brothers listed $613 billion in debts, the most in U.S. Bankruptcy Court history, when it sought protection from creditors today in New York. Crude oil fell more than $7 to a seven-month low as refineries in Texas and Louisiana escaped major damage from Hurricane Ike. That cut demand for ethanol, refined from sugar cane in Brazil.

Raw-sugar futures for March delivery dropped 0.53 cent, or 3.8 percent, to 13.53 cents a pound at 8:58 a.m. on ICE Futures U.S., the former New York Board of Trade.

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