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Sugar Falls on Oversupply, Oil Declines as China Grows Slower

April 13, 2012 at 21:21 by Vladimir Vyun

Sugar tumbled today as experts talked about oversupply in the market. Olam International Ltd. forecast that global output will exceed consumption by 10 million metric tons in 12 months ending in September. Farmers planted more cane and beet after prices reached a 30-year record last year, leading to this year’s surplus. Sugar price fell from $0.2433 to $0.2334 per pound on ICE today after touching $0.2328 — the lowest settlement since March 12.

Crude oil fell today on slowing economy of China and as Saudi Arabia signaled that it’s determined to lower prices. China’s gross domestic product grew 8.1 percent in the first quarter of 2012, slowing down from 8.9 percent growth in the previous three months. The median forecast was 8.4 percent. Ali al-Naimi, Saudi Arabian Minister of Petroleum and Mineral Resources, said that the country is ready to boost supply in order to bring oil prices down. May futures for delivery of crude was down $0.81 to $102.83 per barrel on NYMEX. Prices have fallen 0.5 percent this week. Brent oil declined from $121.63 to $120.37 per barrel today on ICE before closing at $121.35.

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