Agricultural commodities surged on Monday amid global easing expectations and persistent drought in the US, Russia and Kazakhstan. At the same time, broadly stronger US Dollar weighted down on rural commodities.
Wheat jumped almost 2% after USDA reported that Kazakhstan wheat output is likely to decline more than a 50% because of dry weather.
Corn soared as the grain commodity is expected to face the largest monthly increase in more than 20 years on the worst drought in the US in more than five decades.
Sugar was bullish as amount of precipitation in India remains below average. Dry weather is expected to curb production and may force the government to impose export restrictions.
Coffee climbed despite improving weather conditions in Brazil. Recent rainfalls in Brazil provided a supply risk-premium for Arabica coffee futures.