Corn drops amid falling ethanol production

Note: This section contains information in English only.
Source: Dukascopy Bank SA
© Scanpix/Reuters
Rural commodities, excluding coffee, dropped on Wednesday amid signs of weak demand for US supplies. Meanwhile, upward revisions of Brazilian crop estimates created heavy pressure on softs. Strong greenback coupled with improved weather conditions in the US also weighed on the commodity group.

Wheat declined on speculation that snow and rains in the US Great Plains and Midwest will improve prospects for winter varieties. Meanwhile, Egypt purchased 180,000 of US grains at lower price compared to European wheat.

Corn sagged 2.36%, attaining a five-month low after the data showed that US ethanol output declined last week. Production of ethanol, mainly from corn, tumbled 13% in the week ended December 14, reported Department of Energy.

Sugar slid despite rising Indian imports as refiners are taking advantage of a recent price drop. The country's sugar imports for re-export and sale in the domestic market totaled 700,000 metric tonnes since October 1, more than combined imports for the last two years.

Coffee was the only gainer, bouncing off two-year low despite persistent pressure from oversupply on the market.


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