Coffee moves lower amid ample global supplies

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Scanpix/Reuters
Rural commodities were mixed on Friday, with corn and sugar advancing and wheat and coffee declining. Broadly stronger US Dollar and weak demand for riskier assets pressurized farm commodities. At the same time, poor condition of the US winter crops lifted the commodity group.

Wheat extended losses on weak demand for US exports. US farmers sold 314,500 tonnes of wheat last week versus forecasts of sales between 250,000 and 450,000 tonnes.

Corn rose as supplies may tighten further after the state maintained the mandate to add ethanol made from corn to motor fuels. However, easing concerns over the US crops and weak demand for US supplies restricted an upward trend.

Sugar climbed, rebounding after previous losses. The sweetener came under heavy pressure after Unica announced that the Brazil's Center South-region's production skyrocketed 73% in the second half of October.

Coffee was bearish as global supplies are likely to be abundant due to improved production in Colombia and Brazil.

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