Sugar plunges, drops the most in 22 years; SGG ETF down over 10%

This was definitely not a sweet day. Raw sugar futures in New York fell the most in 22 years and refined-sugar prices also dropped by a record in London.

Raw materials tumbled on concern that demand for crops will ease in China as it it set to increase interest rates. To compound matters, the  ICE Futures U.S. raised margins on contracts by 65%. Europe also announced plans to increase sugar exports.

Biggest drop ever

Refined-sugar futures for March delivery fell $91.50 per metric ton, -12%, the biggest drop ever
Raw-sugar futures fell 3.45 cents, also 12% to settle at 26.21 cents on ICE. The single-day drop and this week’s drop of 17% were the most since July 1988.

SGG, the sugar ETF which had had a very sweet performance this year, dropped 10.2% today:

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