Corn flat after the EU cut its crop estimate

Note: This section contains information in English only.
Source: Dukascopy Bank SA

Rural commodities were mixed, with wheat and sugar climbing and coffee retreating. Solid greenback created heavy selling pressure on the commodity group. Meanwhile, market participants remained cautious ahead of the USDA crop forecasts report due on Thursday.

Wheat was the top-gainer on speculation that the US government may cut its global production estimate as drought damaged crops in Russia and Australia.

Corn was flat after the EU cut its production forecast by annualized 16% this season. However, the EU stocks are expected to surpass estimates at the end of June 2013 as farmers may reduce their use of corn as livestock feed.

Sugar jumped as rains in Brazil may tighten supplies from the world top producer. Sugar output in Brazil Center South fell 22% in the second half of September due to heavy rainfalls.

Coffee tumbled to four-week low on speculation that rainfalls in Brazil will improve harvest prospects.

 

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