Sugar prices sank to a five-month low Thursday as a higher output from top producer Brazil helped push world supply beyond demand estimates.

Other commodities traded lower in a broad sell-off led by crude oil, which retreated Thursday after hitting a new record overnight above $135 a barrel. Gold, silver, wheat and soybean futures also fell.

World sugar production is forecast to reach 161.7 million tons for 2008-09, above the 160.8 million tons of expected world consumption, the U.S. Department of Agriculture said in a report this month. Brazil, which accounts for 20 percent of world sugar output, is expected to produce 33.7 million tons in 2008-09, up 1.6 million tons from the previous year.

“There’s a huge supply of sugar that is overburdening the market,” said Anthony Compagnino, vice president and commodities trader at East Coast Options in New York. “Overall, it’s the fundamentals of the market finally converging with the futures’ price.”

Sugar futures for July delivery fell 0.23 cent to 10.37 cents a pound on the New York Intercontinental Exchange, or ICE, after earlier falling to 10.24 cents, the lowest since Dec. 12.

Sugar futures are off 30 percent from their contract high of 15.21 cents a pound, reached March 7. Also pressuring prices are rising ocean freight costs, which have cut into the profits of sugar-exporting countries.

Other agriculture futures mostly traded lower Thursday. July wheat futures fell 20 cents to $7.58 on the Chicago Board of Trade, while July soybeans lost 18 cents to $13.31 a bushel.

July corn futures gave up 8.75 cents to $5.985 a bushel on the CBOT, while July rice futures rose 7 cents to $20.60 per 100 pounds.

In energy markets, oil future fluctuated, setting a new record above $135 in overnight trading and then falling back later in the day as a stronger dollar gave investors a chance to cash in profits from oil’s recent rally.

Light, sweet crude for July delivery fell $1.74 to $131.43 a barrel on the New York Mercantile Exchange, after earlier rising to a new all-time high of $135.09 a barrel. Crude settled at $133.17 on Wednesday.

Other energy futures traded mixed. June gasoline futures fell 7.61 cents to $3.204 a gallon on the Nymex, while June heating oil futures rose 1.92 cents to $3.9276 a gallon.

In precious metals markets, gold futures fell Thursday as a stronger dollar diminish the metal’s appeal as a hedge against inflation.

Gold for June delivery dropped $10.30 to $918.30 an ounce on the Nymex, it’s first drop in six sessions.

Other metals also traded lower. July silver fell 8.5 cents to $17.965, while July copper lost 3.2 cents to $3.7125 a pound.