By Giulia Petroni
A roundup of key agricultural commodity markets for the week starting Dec. 23 by Dow Jones Newswires in Barcelona.
GRAINS & OILSEEDS: Trading volumes are set to decline across markets over the next couple of weeks due to the Christmas holidays. On Monday, Chicago wheat futures rise 1.2% to $5.40 a bushel, while corn is up 0.1% at $4.47 a bushel. Soybean prices are down 0.5% at $9.74 a bushel.
Looking ahead to 2025, global agricultural markets face a potentially turbulent year, largely due to the prospect of new tariff disputes as President-elect Donald Trump returns to the White House.
The anticipated fresh round of U.S. tariffs are likely to target imports from China, Mexico, Canada, and potentially other countries.
"This move threatens to compress margins for farmers, particularly those producing major grains and oilseeds, which have already seen price declines in 2024," Rabobank's head of Agri Commodity Markets Research Carlos Mera said. "This development, coupled with ongoing geopolitical tensions and climate challenges, is expected to significantly impact agricultural margins and trade worldwide."
SOFT COMMODITIES: Cocoa prices surged past the $12,000 mark last week amid concerns over a weaker-than-expected crop in West Africa, home to the biggest producers of cocoa beans. Coffee prices have also climbed significantly, and are currently up almost 74% year-to-date due to global supply worries caused by drought and high temperatures in producing countries.
Cocoa is down 1.5% at $11,779 a metric ton, while coffee rises 0.4% to $3.26 a pound. Sugar is down 0.3% at 19 cents a pound.
According to market watchers, prices for both commodities could decline next year. "Given that these commodities are trading at levels well above cost of production, RaboResearch expects production to expand and demand to contract in the coming year," analysts at Rabobank said.
Still, prices paid by consumers will likely keep increasing as higher costs continue to be passed along the supply chain.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
December 23, 2024 11:40 ET (16:40 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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