Sugar steady amid easing concerns over rains in Brazil

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Source: Dukascopy Bank SA
© Scanpix/Reuters

Rural commodities were mixed on Thursday, with sugar and corn easing up and wheat and coffee plunging. Broadly weaker US Dollar and encouraging Mario Draghi comments created appetite for riskier assets. However, upward revisions of global supplies weighted down on the farm commodities.

Wheat dropped on speculation that Canadian harvest is likely to rise by annualized 5.8% in 2012 due to favorable weather conditions.

Corn was flat as US harvesting is progressing at faster pace while demand for US supplies is slowing.

Sugar was steady as supply-risk premium vanished amid eased concerns over expected rains in Brazil.

Coffee plunged the most in the last two weeks as supply-side support from expected rains in Brazil started to fade. Adding to the negative mood of the commodity, US supplies climbed last week.

 

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