Corn bounced off amid Argentina's crop concerns

Source: Dukascopy Bank SA
Farm commodities advanced on Wednesday despite weak demand for risky assets after FOMC meeting minutes' release. Broadly stronger US Dollar also failed to send rural commodities lower. The commodity group gained momentum on speculation China may increase its purchases after the Lunar New Year holidays.

Wheat climbed amid global output concerns. Wheat output in Texas is expected to drop below the normal level because of drought during fall and winter. Moreover, Indian harvest is likely to decline 3% in 12 months, starting from April 1.

Corn rebounded, being boosted by sharp gains in soybean futures. Additionally, corn futures saw some support from weather conditions in Argentina as some weather services providers claim rains last week were below expectations.

Sugar was bullish on speculation that investors will buy the sweetener as net short positions approached a record of 90,426 contracts. Lower sugar prices started to raise ideas that Brazil will direct more sugar cane to produce ethanol.

Coffee soared on Central American crop concerns. Production in Honduras, Guatemala, Costa Rica, Nicaragua, El Salvador and Mexico may decline 20% this year and 25% in 2014 because of spreading coffee leaf rust.
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Thu, 21 Feb 2013 10:04:04 GMT

Aussie falls as Asian shares declined

Australia's Dollar fell, after the biggest one-day decline in a month yesterday, as Asian shares plummeted, curtailing demand for risky assets. The Aussie lost 0.2% to $1.0233 at 4:46 p.m. in Sydney after sliding 1% to $1.0256 yesterday. The currency bought 65.62 yen from 95.97 in New York. Australia's 10-year yield fell 0.05 percentage point to 3.54%.

Thu, 21 Feb 2013 08:33:05 GMT

Brent oil retreated after FOMC meeting minutes

Energy futures apart from natural gas retreated on Wednesday after the FOMC meeting minutes showed that the Fed may stop its easing measures. Meanwhile, market players continued to anticipate the EIA inventory report due on Thursday. Crude oil slumped the most in three months after the American Petroleum Institute reported US stocks rose 2.96 million barrels last week, reaching the highest

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