By Ron Day
Oct. 2 (Bloomberg) -- Sugar dropped as the dollar strengthened against the euro, boosting commodity prices for buyers holding the 15-nation currency.
The dollar gained on speculation that the risk of a recession in Europe is rising after the European Central Bank kept its benchmark interest rate unchanged at a seven-year high. The Reuters/Jefferies CRB Index of 19 commodities fell as gold and crude oil slid. Lower crude cuts demand for ethanol, a fuel made from sugar cane in Brazil.
Raw-sugar futures for March delivery dropped 0.28 cent, or 2 percent, to 13.65 cents a pound at 8:42 a.m. on ICE Futures U.S. in New York. Sugar gained 29 percent this year through yesterday, the second-best performer on the CRB after cocoa.
To contact the reporter on this story: Ron Day in New York at rday1@bloomberg.net.
Thursday, October 2, 2008
Sugar Falls in N.Y. as Dollar Firms, Raising Commodity Costs
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