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Coffee & Sugar Ignore Problems of Commodity Market

January 7, 2015 at 1:55 by Vladimir Vyun

Coffee and sugar demonstrated huge gains today due to concerns about supply from Brazil. Forecasters predict that precipitation will be below norm for a week or so in the world’s biggest grower and exporter. This may damage crops that need enough water for growth.

It is a bit surprising to see the impressive rally considering that the commodity market is a bad shape currently. The drop of crude oil prices led to general weakness of raw materials. Yet supply concerns allowed coffee and sugar to rally, ignoring negative factors.

March futures for delivery of Arabica coffee climbed 4.05 percent to $1.7490 per pound as of 1:52 GMT on ICE today. Sugar gained as much as 4.28 percent to $0.1487 per pound.

If you have any questions and comments on the commodities today, use the form below to reply.

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