Soft commodity futures were pummelled Thursday as the sugar, arabica coffee and cocoa markets were caught up in a commodity-wide selling spree. The Reuters-Jefferies CRB index, a global benchmark for commodities, was headed for its biggest loss in two years on widespread liquidation. "It's just a massive, macro liquidation," said Nick Gentile, the head of trading of commodity fund Atlantic Capital Advisors.
Carsten Fritsch, commodity analyst at Commerzbank in Frankfurt, pointed to the sharp fall in oil and metal markets and said, "The day's decline in agriculture is entirely related to broader markets." New York's July cocoa contract dropped $156 or by 4.9 percent to end at $3,055 per tonne, the weakest settlement for the second position contract since April 11. The July raw sugar contract declined 0.49 cent to finish at an 8-month low at 20.86 cents per lb. The July arabica coffee contract on ICE Futures US slid 6.25 cents or by 2.12 percent to close at $2.8825 per lb. Arabicas' second position contract posted its biggest two-day percentage loss since March 11.
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