By Joe Hoppe
A roundup of key agricultural commodity markets for the week Oct. 21-25 by Dow Jones Newswires in Barcelona.
GRAINS & OILSEEDS: The macro mood is mixed, as the U.S. dollar gains strength ahead of a quiet week for data releases.
The U.S. dollar is stronger, weighing on key commodity currencies like the Brazilian real, hampering U.S. soybean export competitiveness during a peak export window, Peak Trading Research analysts said in a note.
Meanwhile on the weather front, forecasts are hot this week in the U.S. with some storms moving across the western Corn Belt. Harvests are wrapping up quickly.
In South America, Brazil weather forecasts show more widespread rains, which will help restore ground moisture and accelerate planting.
October is usually the most bullish time of year for agricultural futures, but prices are lower on month. This reflects dry Brazil weather and Chinese fiscal stimulus pulling seasonally bullish attitudes forward to September, Peak Trading said.
Chicago wheat futures are up 0.6% at $5.76 a bushel on Monday, while corn is up 1.2% on $4.10 a bushel. Soybean prices are up 0.9% at $9.79 a bushel.
SOFT COMMODITIES: Agricultural softs have broadly fallen over the past week, though prices still remain elevated on adverse conditions in key markets, like the U.S. for cotton and Brazil for coffee and sugar, according to market watchers.
Cocoa prices are up 76% year to date but are down 3.55% on the month, while coffee is up more than 33% year to date and 0.1% on the month.
In the near term, the European Commission's decision to postpone the application of the EU Deforestation Regulation--announced on Oct. 2 and subject to approval from the European Parliament and Council--could see related soft commodities, such as cocoa and coffee facing headwinds, said analysts from BMI, a unit of Fitch Solutions.
If confirmed, the decision would give producing countries more time to adjust supply-chain processes and comply with the regulation, reducing the risk of supply crunches.
Bullish cocoa sentiment in recent weeks has also been driven by supply-related concerns in powerhouse producer Ivory Coast, where recent heavy rains represent a risk for the production, harvest and delivery of cocoa beans, BMI said.
On Monday, cocoa is flat on $7,393 a metric ton, while coffee is down 2.5% at $2.51 a pound. Sugar is down 1.9% at $0.22 a pound.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
October 21, 2024 12:33 ET (16:33 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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