Prices for most major agricultural commodities fell as key weather forecasts improved and crop futures joined a broader global selloff.
Wheat fell for a third day in Chicago, the longest rout in seven weeks, while corn dropped the most in more than a month. Cocoa, sugar, cotton and coffee all traded lower.
Rains are expected to boost prospects for crops from Russia to South America in the next few days, and recent rainfall in Brazil improved flowering for arabica-coffee trees after a drought.
“Grains, select soft commodities and livestock are vulnerable to profit-taking in the short term” after a recent rally, which was in part prompted by weather-related risks to production, UBS analysts said in a note.
Most major commodities declined Wednesday as the dollar jumped and equities tumbled, as rising coronavirus infections and tougher lockdowns added to worries about the economic hit from the pandemic.
Battered economies could weigh on coffee demand this year and next, and harvests have generally been strong, Fitch Solutions analysts said in a note. The sugar market would need to have a more substantial deficit for prices to post a sustained rally, according to the International Sugar Organization.