Coffee tumbles on Brazil rainfall

Friday, March 21, 2014

US stocks headed higher yesterday, paring Wednesday’s losses as investors were encouraged by economic data. With both the Philly Fed index and Leading index coming in above expectations the S&P 500 managed to close 0.6% higher while the DJIA added 0.67% despite a weaker open for US markets as participants digested Yellen’s comments.

Chinese stocks posted significant gains on the hopes that the government would shore up support and loosen funding restrictions for property developers and banks. The CSI 300 added 3.44%, driven largely by financials as the index reversed losses that had accrued throughout the week, snapping a four week losing streak while the Shanghai Composite gained 2.72% as it rose to a two week high. However, growing concerns regarding the property sector and slowing demand growth have put pressure on the yuan in recent weeks, compounding Beijing’s efforts to stem hot money inflows as the yuan touched a 12 month high at 6.2330 against the dollar yesterday.

Front month Arabica coffee futures extended declines yesterday, losing 5.4% as prices closed at a four week low after rains in Brazil helped ease drought woes that saw prices rally 86% since the start of the year. Front month raw sugar prices also closed lower yesterday, shedding 1.5% as prices touched 17c/lb as technical indicators suggested the market rally was overbought.

Front month Arabica futures plumment on Brazilian rain forecasts

KC1 Comdty Generic 1St KC Fut 2014 03 21 08 52 48

CNY weakens for a fifth straight session against the dollar

CNY Curncy China Renminbi Spot 2014 03 21 08 45 03

Events for today

21

JP Market Holiday

0930

UK

Feb

PSNCR & PSNB

OE: 

Feb  FTSE 100 Index & Equity (LIFFE) 

All times UK Local Time

Topics: Coffee, CNY, Sugar
More from: Kash Kamal