AGS WEEK AHEAD: Low Holiday Volumes Ahead of Potentially Turbulent New Year

Dow Jones2024-12-30

By Joe Hoppe

A roundup of key agricultural commodity markets for the week ending Jan. 3, 2025 by Dow Jones Newswires in Barcelona.

GRAINS & OILSEEDS: Trading volumes are set to remain low across markets over the next week due to the New Year holidays. On Monday, Chicago wheat futures rise 0.3% to $5.48 a bushel, while corn is up 0.2% at $4.55 a bushel. Soybean prices are up 0.2% at $9.91 a bushel.

Looking ahead to the new year, global agricultural markets face a potentially turbulent time, broadly reflecting the prospect of new tariff disputes as President-elect Donald Trump returns to the White House.

Dry Argentine weather forecasts are squeezing record high short positions in the soybean meal market, Peak Trading analysts said in a note. Brazilian weather looks good following last week's widespread rains, keeping Brazil on track for a record crop.

Demand signals are mixed, with sales data showing high export demand for corn and wheat and a marketing year low for soybean exports.

SOFT COMMODITIES: Cocoa prices have been very volatile in December, surging past the $12,000 mark earlier in the month amid concerns over a weaker-than-expected crop in West Africa--home to the biggest producers of cocoa beans--before collapsing back. Coffee prices have also climbed significantly, and are currently up almost 74% in the year to date due to global supply worries caused by drought and high temperatures in producing countries.

Cocoa is up 11% at $11,263 a metric ton and has more-than-doubled on year, though it remains down 4% on week. Coffee falls 1.6% to $3.18 a pound, while sugar is down 1% at 19 cents a pound.

Supply-side issues should remain the primary driver in the soft commodities market, though the likelihood of a stronger U.S. dollar in 2025 under Trump will weigh on prices of greenback-denominated commodities like sugar, cocoa and coffee, BMI analysts said in a note.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

December 30, 2024 10:56 ET (15:56 GMT)

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AGS WEEK AHEAD: Low Holiday Volumes Ahead of Potentially Turbulent New Year

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