Farm commodities slumped on Wednesday amid improved weather in Brazil and India. Meanwhile, slowing demand for US grains exports weighted down on wheat and corn futures. However, broadly lower US Dollar provided slight support for rural commodities.
Wheat plunged to almost three-week low on news that demand for the commodity will weaken as livestock producers are switching to cheaper corn for animal feed.
Corn dropped despite reports that US corn output is likely to miss government's forecasts. Sending the commodity lower, US farmers are increasing sales amid inflated corn prices.
Sugar slid on speculation that Brazilian sweetener's production will beat estimates in the current season as timely rains boosted crop yields.
Coffee was the top-loser amid slowing demand as certified inventories attained two-year high. Inventories certified by ICE Futures US jumped to 1.97 million bags on Tuesday, the highest level since Sept. 2010.