By Ron Day
Nov. 20 (Bloomberg) -- Cocoa prices fell in New York, ending a five-session rally, on speculation that a deepening recession will erode demand for the chocolate ingredient and other commodities. Orange juice gained.
The Standard & Poor's 500 Index fell below its lowest close in 11 years after economic reports signaled a deeper recession and lawmakers postponed voting on a plan to rescue the auto industry. First-time claims for U.S. unemployment insurance rose last week to the highest since 1992, a sign the labor market is deteriorating.
``The biggest thing affecting cocoa is the stock market,'' said Hector Galvan, a market analyst for RJO Futures in Chicago. ``Economic malaise continues to permeate in the minds of people.''
Cocoa futures for March delivery dropped $63, or 3 percent, to $2,009 a metric ton on ICE Futures U.S. in New York, the biggest drop in two weeks. The price gained 7.5 percent in the previous five sessions.
A rebound by the dollar eroded the appeal of U.S. commodities. The Reuters/Jefferies CRB Index of 19 raw materials is down more than 50 percent from a record in July as demand for energy, metals and crops dwindled.
This year, cocoa is down 1.3 percent, the smallest drop among 17 prices in the CRB index. Hogs and sugar still are up in 2008.
Orange-juice futures for January delivery rose 0.25 cent, or 0.3 percent, to 76.95 cents a pound. The price has dropped 47 percent this year.
To contact the reporter on this story: Ron Day in New York at rday1@bloomberg.net.
Posts
No comments:
Post a Comment