Economic worries sink commodities

Oil, nickel, sugar and gold led a global slide in commodities Monday as economic jitters stoked concern that demand for raw materials would decline.

Oil futures dropped 2.6% in New York, nickel fell 4.4% and sugar slumped 5%. Gold prices fell for a fifth straight session.

Many commodities have fallen with stock prices since Feb. 27, when Chinese shares were slammed by rumors that the government wanted to cool down that hot market.

Economic growth concerns were amplified Monday when Chinese authorities said they wanted their economy’s growth to slow this year.

In the U.S., worries about the economy have centered on the weakening housing market.

“This shock we had a week ago in China has opened up a can of worms” for commodities, said Sean Corrigan, a strategist at Diapason Commodities Management in Switzerland.

Prices of many raw materials have soared in recent years as demand has rocketed amid a global economic boom. But some commodities, including crude oil, began to pull back last year.

Sugar futures peaked last year above $19 a pound. On Monday, the near-term sugar contract dropped 56 cents to $10.66 a pound in New York.

Oil, which had been in an uptrend recently, lost ground Monday. Near-term crude futures fell $1.57 to $60.07 a barrel.

Gold futures slid $4.80 to $636.70 an ounce.