Sugar tumbled amid rising global supplies

Source: Dukascopy Bank SA

Rural commodities jumped on Wednesday on USDA comments. Fed easing speculation coupled with greenback's weakness also bolstered farm commodities. However, rain forecasts in the main grain-growing regions in the US restricted the rally.

Wheat surged after USDA reported that global production is likely to fall in the current crop year. Meanwhile, Western regions in Australia are expected to remain dry threatening to curb production prospects.

Corn gained despite potential increase in Brazilian exports and speculation that rains in the US are likely to boost harvest.

Sugar futures rose after Thailand stated that sweetener's exports may decline from a record high as El Nino weather pattern may damage the next harvest.

Coffee ended the day on the positive note despite improving weather conditions in Brazil.

 

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