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Grains Rally, Some Softs Don’t Follow

February 5, 2015 at 20:15 by Vladimir Vyun

Grains rallied today following yesterday’s losses. Many other softs gained as well, though not all of them. Among losers were coffee, sugar and orange juice.

What are the reasons for the rally? One of the possible drivers for agricultural commodities’ gains is the weakness the dollar. In fact, many riskier assets, including raw materials, rallied while safer ones were in decline during the current trading session. Another possible reason is that traders found the commodities to be a good value after the recent declines. Short-covering is yet another reason for prices to rise.

Whatever the reason for the rally, many analysts do not believe that it will last long. Prospects for global glut make the outlook bearish for grains.

Corn for delivery in March added 0.46 percent to $3.8525 per bushel as of 20:08 GMT on CBoT today. Soybeans gained 0.95 percent to $9.8125 per bushel. Wheat rallied as much as 2.89 percent to $5.2575 per bushel. At the same time, March Arabica coffee lost 0.09 percent to $1.6475 per pound, subtracted 0.28 percent to $0.1441 per pound and orange juice went down 0.25 percent to $1.3755 per pound on ICE.

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

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