(Bloomberg) — Arabica coffee futures slumped to a four-week low as concerns about the risks posed by the omicron virus variant weighed on financial markets.
The most-active March arabica contract fell as much as 2.7% to $2.285 a pound in New York on Monday, the lowest since Nov. 22.
Equities and commodities declined as European nations introduced tighter restrictions to fight a surge in Covid-19 infections. The sell-off also came as Senator Joe Manchin refused to support President Joe Biden’s economic agenda, prompting Goldman Sachs Group Inc. to lower its real gross domestic product forecasts.
Sugar futures dropped as much as 1.9% to 18.74 cents a pound, the lowest since Dec. 3. Expectations of a rebound in sugar production globally combined with concerns over slowdown in demand will weigh on prices, according to brokers at ADM Investor Services.
“The market continues to be gripped by the macro and its hold will continue probably into the New Year with little consideration for the fundamental picture,” the brokers said in a note.
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