Sugar slumps on global supply glut

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Scanpix/Reuters
Farm commodities apart from coffee retreated on Wednesday on weak risk appetite on the market amid lack on Greek bailout decision and concerns over the US fiscal cliff. Moreover, stronger US Dollar and favorable weather conditions in South America added pressure on the commodity group.

Wheat was almost flat after Deere & Co revised down its wheat price forecast for 2012-2013 and 2013-2014 to USD8.15 per bushel and USD7.25 per bushel, respectively.

Corn dropped on speculation that rains in South America will boost crop yields, thus easing global supply concerns. Sending corn futures lower, Deere & Co cut its price forecast for the commodity for 2012-2013 and 2013-2014 to USD7.75 per bushel and USD6 per bushel, respectively.

Sugar declined the most in two weeks on global supply glut. Societe Generale lowered its price forecast for the next quarter to 20.4 cents per pound.

Coffee was the only gainer despite signs of abundant global production and strong greenback.


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