White sugar futures tumble 4%
Published: 03/03/2010, 8:24:52 AM
NYSE LIFFE white sugar futures tumbled 4% on fund liquidation Tuesday, extending losses made earlier in the week, according to Dow Jones.
There are reports from South Asian countries--including Pakistan--that demand destruction is occurring following the record-high prices, a London-based broker said.
White sugar prices hit record highs in January, as tight global supplies triggered a sustained rally late 2009 into early 2010.
However, white sugar prices have fallen around 20% since hitting the record high Jan. 27, in line with a weaker commodities complex.
NYSE LIFFE May white sugar futures are trading down 4.2% at US$609.00 a metric tonne, as of 1545 GMT.
Brazil, the world's largest sugar producer, has a large crop looming, which should take some of the pressure off tight world supplies, said the broker.