Soft commodities were dropping in value on Tuesday as additional tradables on the commodity complex also slipped, according to Reuters.
Concerns about Spain preparing to postpone bailout aid for its debt-hobbled banks and public finance systems drew worries back to the sovereign debt crisis and the damages it has wrought. Less than one week after the U.S. Federal Reserve announced a third round of quantitative easing, concern continues to ring loud about the state of the globe's financial health.
"I think what we're seeing is that the initial support that some of the softs markets got following the announcement of QE3 has petered out at this point," commodities analyst Sudakshina Unnikrishnan with Barclays Capital told Reuters. "The broad-based weakness is primarily on a slightly more cautious attitude on risk."
At 2 p.m., cocoa futures dropped 2.01 percent, a $52 loss $2,532 per metric ton. Coffee futures gained 1.05 percent, a 0.0185 cent loss to $1.775 per pound. Sugar futures fell 3.03 percent, a 0.0063 cent loss to 20.15 cents per pound.
Bloomberg reports two-year notes issued by Spain remained low following an auction as commodities lost value.
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