Sugar gains on bargain buying; long-term prospects bleak

Note: This section contains information in English only.
Source: Dukascopy Bank SA
Rural commodities were mixed ahead of the closely-watched USDA report on global supply estimates due on Friday. Meanwhile, investors continued to monitor weather conditions in South America.

Wheat sagged 0.67%, falling for the second session in a row after France lifted its inventory forecast by 17% from last month's estimate.

Corn was the top-performer on speculation that US stocks may have fallen to the lowest level in nine years as the most severe drought since the 1930s cut output. The USDA is expected to report a 15% annual drop in corn reserves as for December 1.

Sugar inched up on technical buying as sugar futures moved into oversold territory. However, long-term prospects remain bearish as Brazil Center South growers are likely to reap by 2.6% more sugarcane than previous estimate in the year that starts on April 1.

Coffee tumbled for the second consecutive session as Brazil coffee growers are expected to harvest between 47 and 50.2 million bags in 2013 despite low-yielding crop cycle. In 2012 Brazil's production attained a record of 50.8 million bags.


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