Soft commodities were slumping on Thursday in the aftermath of the chairman of the U.S. Federal Reserve noting the body is aiming to cease economy-spurring stimulus measures by the end of the year, according to Bloomberg.
Sugar, cocoa and coffee futures endured their sharpest losses in more than 30 days after Ben Bernanke's remarks following adjournment of two days of policy meetings on Wednesday afternoon.
"What we are seeing is a broad sell-off across all commodities, led by precious metals," states a Thursday email to Bloomberg authored by analyst Carsten Fritsch with Commerzbank AG in Frankfurt, noting commodities' allure was one victim of the Bernanke commentary.
At 9 a.m. on Thursday, sugar futures dropped 2.14 percent, a 0.0037-cent loss to 0.1692 per pound. Cocoa futures fell 2.12 percent, a $47 plunge to $2,169 per metric ton. Coffee futures sank 1.33 percent, a 0.0165-cent slide to $1.227 per pound.
Reuters reports the Fed chief said during his customary news conference that the pace of growth of the world's largest economy indicates expansion permits the central bank to cut down on the stimulus measure later on this year.
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