What dropped on slowing demand for US supplies

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

Farm commodities apart from wheat moved higher on Tuesday amid broadly lower US Dollar. However, speculation that improved weather conditions in the top-growing regions are likely to boost global supplies created pressure on agriculture.

Wheat slumped for the sixth session as demand for US supplies in slowing. USDA expected US wheat exports to total 344.7 million bushels between June 1 and September 27, a 9.8% lower than in in the same period last year.

Corn advanced despite speculation that US production may beat government's estimates. INTL FCStone expects corn output to reach 10.824 billion bushels, more than USDA forecast of 10.717 billion bushels.

Sugar rose despite a 5% increase in output from Mexico this year. Slightly lower global supplies lifted the sweetener.

Coffee jumped to two-month high as farmers may cut supplies from Brazil. Brazilian government passed subsidized loans to finance coffee bean storage thus enabling growers to sell their inventories later.

 

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