Coffee inched up despite higher global supplies

Source: Dukascopy Bank SA

Rural commodities apart from coffee plunged on Tuesday amid stronger US Dollar and favorable weather conditions in the world top growing regions. Moreover, recent rally in prices encouraged producers to sell more supplies, sending farm commodities lower.

Wheat sank as planting of the US winter-wheat crop accelerated due to dry weather. Adding pressure on the commodity, Australia is likely to witness more rains that may boost output prospects.

Corn futures declined; however, the downswing was restricted by speculation that recent slump in price would attract importers amid falling global supplies.

Sugar continued to fall as Australia, the world's third largest producer, upgraded its output forecast, citing better yields and bigger planting areas.

Coffee recovered some losses despite increased supplies as farmers were motivated to sell more coffee due to higher prices.

 

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