By Joe Hoppe

A roundup of key agricultural commodity markets for the week of March 17-21 by Dow Jones Newswires in Barcelona.

GRAINS & OILSEEDS: The macro mood is more bullish as the U.S. dollar weakens against key commodity currencies.

The U.S. Senate passed a Republican spending plan on Friday, averting a U.S. government shutdown and pushing the market back toward a risk-on mood, a boon for agricultural markets. The U.S. dollar's slide to four-month lows has also boosted appetite for agricultural markets and currencies like the Brazilian real as it becomes cheaper for international purchasers to buy and sell dollar-denominated commodities.

This week will include the Federal Reserve's policy decision on Wednesday. The Fed isn't expected to cut interest rates, but the comments from Fed Chair Jerome Powell will move risk assets, the greenback and thus commodity markets, Peak Trading analysts said in a note.

South American weather is mixed, with parts of Brazil remaining too dry for solid production. Extended weather forecasts are trending wetter over late March to early April, which will be critical to support corn development stages and maintain yield potential. Argentina weather remains favorable after heavy rains in early March, and while the weather is turning drier, temperatures should remain moderate, Peak Trading said.

Turning to the U.S., subsoil moisture is still low across the western Corn Belt and Plains regions and forecasts remain dry as early planting season approaches. This is keeping wheat prices well-supported, analysts said.

Chicago wheat futures are up 2.3% at $5.70 a bushel on Monday, while corn is flat on $4.59 a bushel. Soybean prices are down 0.1% at $10.15 a bushel.

SOFT COMMODITIES: Agricultural softs have had a mixed performance over the past week, with cocoa sliding but coffee and sugar gaining on week.

Cocoa prices sit lower on week in thin, volatile trading. The market is set to return to surplus and the crop trades at its lowest level since November, ING analysts said in a note. While cocoa prices have room to fall further, the market is still facing supply risks. Global inventories are tight after three years of deficits and the market will likely remain volatile, ING said.

Coffee trading has also been relatively volatile, with bearish sentiment driven by concerns about high prices weighing on demand and the effect of tariffs, BMI analysts said in a note. Sugar, meanwhile, has gained on reports of unfavorable weather conditions in Brazil, BMI added.

On Monday, cocoa is 0.55% up at $7,870 a metric ton, while coffee is up 2.05% at $3.85 a pound. Sugar is down 0.15% at $0.20 a pound.

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

(END) Dow Jones Newswires

March 17, 2025 13:39 ET (17:39 GMT)

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