Farm commodities were mixed, with sugar and coffee rebounding and grains dropping. Broadly stronger US Dollar coupled with better weather conditions in the US created heavy pressure on agricultural commodities.
Wheat futures declined despite crop forecasts' cuts. Rabobank lowered Australian wheat output to 22.79 million MT in 2012-2013, citing unfavorable weather conditions in July.
Corn was the worst-performer after USDA reported that dry weather last week accelerated harvesting. USDA stated that about 15% of crops were harvested last week compared to 10% in the previous week.
Sugar eased up on speculation that demand is recovering as money managers are increasing bets on low prices. Moreover, sugar surplus in India is likely to contract next season.
Coffee was the top-gainer on speculation that global supplies may decline as harvests in Colombia and Brazil are expected to be lower than forecast this year.