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Sugar, Crude Oil, Cotton Fell

September 18, 2009 at 19:39 by Vladimir Vyun

Sugar dropped as India, the largest consumer in the world, lowered imports and the dollar rebounds, decreasing the attractiveness of the commodity as an alternative investment. The dollar rose 0.7 percent against a basket of six major currencies. Increasing rainfall has positive influence on sugar yield in India, curbing a rise in imports. March futures for raw-sugar delivery dropped $0.0029 (1.2 percent) to $0.2364 per pound by 10:24 on ICE Futures U.S. in New York.

Crude oil slid because the dollar rebounded against the euro, reducing appeal of dollar-priced assets as inflation hedge. As more investment banks became involved in oil-trading in recent years, oil price became more influenced by equities and the dollar. October delivery for crude oil slid $0.35 (0.5 percent) to $72.12 per barrel as of 10:43 on NYMEX.

Cotton fell, halting the longest rally in 36 years, as the dollar strengthen, eroding the attractiveness of fiber exports from the U.S., the biggest shipper in the world. Both decline of crude oil and rebound in dollar have negative impact on cotton prices. December futures for cotton delivery fell $0.0014 (0.2 percent) to $0.6404 per pound at 11:02 on ICE Futures U.S. in New York.

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