LONDON (Commodity Online): Agricultural commodities came under further pressure on Wednesday, unable to withstand the broad tide of selling that engulfed the market. A combination of a stronger dollar, bearish sentiment, risk reduction and ongoing concerns over the euro debt situation pressured the complex lower ahead of Thursday’s US market holiday, said Barclays Capital in a snippet.
According to Barclays, Grains prices dropped further, posting broad based and widespread declines. Front month CBOT Corn prices shed 10.25 cents to close at $5.89/bushel. While feed demand and US export sales remain weak, Ethanol production continues apace, especially after the recent slide in prices.
For 2011-12 global Corn outlook
Indeed, latest EIA data showed that US Ethanol production in the week ending 18 November totalled 917Kbpd, up 1Kbpd on the week.
Front month CBOT soybeans closed 30.5 cents lower, at $11.23/bushel. Wheat prices posting declines – front month CBOT wheat closed 14.75 cents lower on the day; KBOT wheat closed 12 cents lower on the day while MGEX wheat closed 24.5 cents lower.
ICE Sugar prices fell on Wednesday to an intra-day low of 23.09 cents/lb – their weakest level in five and a half months. Prices have been weighed by broad macro-economic concerns but fundamentals have weighed on prices as well, with a market surplus and India giving the go-ahead for a million tonnes of exports for 2011-12.
