Farm commodities dropped on Friday despite softer US Dollar. Weakening demand for US supplies coupled with favorable weather forecasts in the country created heavy selling pressure on grains. Meanwhile, renewed oversupply concerns sent sugar and coffee futures lower.
Wheat prolonged its slump on worries that demand for US supplies is weakening due to availability of cheaper grains from Russia.
Corn followed bearish trend on soft demand for US exports due to inflated prices after severe drought this year. Moreover, Brazil and Russia offer cheaper supplies.
Sugar inched down as worries that global output will outplace demand renewed. The International Sugar Organization reported that supply is likely to exceed consumption by 5.85 million MT in 12 month, starting from October 1.
Coffee tumbled the most in 10 weeks on expected increase in global supplies as expected rains in Brazil are not expected to create notable impact on coffee harvest.