Sugar advanced on tightening supplies

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

Farm commodities skyrocketed on Monday after meteorologists reported that abnormally hot weather is likely to persist in the US next weekend. At the same time, recent rainfalls in Brazil damaged coffee and sugar crops in the country.

Wheat approached 14-month high as drought in the past weeks curbed spring harvest in the northern part of the US Great Plants.

Corn rallied as US faces the worst drought in the last 30 years. The speed of crop damage may force the government to make a record reduction in the country's July inventories.

Sugar ended the day on a positive note, adding 2%. The sweetener climbed on mounting supply uncertainties as dry weather threatened crops in India while rains delayed Brazilian harvest.

Coffee surged on unfavorable weather conditions in Brazil. However, a 52% increase in Arabica coffee production in Colombia in June limited gains of the commodity.

 

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