27.07.2011 - Agricultural commodity markets' sensitivity to adverse weather news is expected to remain acute
Weather is currently the focal point foragricultural commodity markets, supporting prices and increasing volatility. The tight supply of many products requires favourable conditions for production to replenish stocks and meet growing demand, but in many producing regions adverse weather conditions are threatening output potential, and markets are reacting by pricing in production risks. Hot and dry conditions in the US are imperilling the corn, wheat, soybean, and cotton crops, and the Brazilian sugar crop has been revised lower due to climatic conditions...............................................Full Article: Source
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