Raw sugar fell in New York, snapping a three-day advance, as the dollar strengthened on concern the conflict between North and South Korea will escalate, curbing demand for alternative investments. The U.S. Dollar Index, a six-currency gauge of the greenback’s strength, gained as much as 0.9 percent today as North Korea threatened a “shower of terrifying fire” should South Korea or the U.S. infringe its sovereignty. The nuclear- powered aircraft carrier USS George Washington was headed toward the Yellow Sea for joint drills with South Korea after North Korea shelled a fishing community and military base on a disputed island on Nov. 23, killing four people. “In light of the geopolitical tensions in Korea and thin holiday markets we are seeing moves that are not consistent with the underlying fundamentals,” Connor Noonan, an analyst at Castlestone Management Ltd. in London, said by e-mail. Raw sugar for March delivery fell 0.27 cent, or 1 percent, to 27.68 cents a pound on ICE Futures U.S. at 7:33 a.m. in New York. U.S. markets were shut yesterday for the Thanksgiving holiday and the ICE exchange will close at 1 p.m. Eastern Time today, according to its website. White, or refined, sugar for March delivery lost $11.30, or 1.6 percent, to $706 a metric ton on NYSE Liffe in London. A stronger dollar makes sugar, which is priced in the currency, more expensive in terms of other monies, cutting demand for the sweetener as an alternative investment. Coffee Harvest Robusta coffee for March delivery slid for a third day, declining $16, or 0.9 percent, to $1,831 a ton on NYSE Liffe, for a 4.6 percent retreat this week. Farmers in Vietnam, the world’s biggest grower of the robusta variety used in espresso and instant drinks, started harvesting coffee after rains delayed picking by almost a month, local traders said yesterday. Arabica coffee for March delivery was 1.2 percent lower at $2.0495 a pound in New York. Cocoa for March delivery fell in New York, declining 0.5 percent to $2,780 a ton. The chocolate ingredient for March delivery gained 0.8 percent to 1,861 pounds ($2,918) a ton in London. To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net

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