Futures Market News
Chinese precautions create commodity futures volatility
Jan 14, 2011 12:27 PM
For the fourth time in slightly more than 60 days, Chinese officials directed banks to allocate funds for deposit as reserves, moves that are widely viewed as gathering liquidity as a result of lending exceeded set target amounts.
"There is pressure on commodities because of news from China," Marius Sonnen, president of New York-based sugar trader Sonnen & Co., told Bloomberg.
Shortly after 4 p.m. on Friday in New York, March-delivery sugar futures dipped 0.87 cents to $30.78 per pound and March-delivery coffee futures slipped 1.23 percent to $2.346 per pound in New York. Cocoa futures for March delivery climbed 3.054 percent increase to $3,045 per ton.
"The market is coming off because of a lack of demand," broker Naim Beydoun of Swiss Sugar Brokers told Bloomberg. "There is no interest from traders and funds."
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