Precautionary measures taken by China to manage threats of inflation prompted sugar futures and coffee futures to slip while cocoa futures rose, Bloomberg reports.
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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