By Joe Hoppe

A roundup of key agricultural commodity markets for the week Aug. 25-Aug. 29 by Dow Jones Newswires in Barcelona.

GRAINS & OILSEEDS: The macro mood is upbeat after U.S. Federal Reserve Chair Jerome Powell opened the door to interest-rate cuts on Friday, raising market risk sentiment.

Powell's comments at the Jackson Hole symposium on Friday improved the bull case for risk assets and sent the dollar lower against a bask of other currencies--a positive for demand as a weaker dollar makes it cheaper for international purchasers to buy agricultural commodities. New U.S. corn sales were strong for a fourth consecutive week last week, and wheat sales were good.

This is a quiet week for macroeconomic data. The next likely data catalyst for grains markets will be nonfarm payroll data on Sept. 5 and consumer-price index data on Sept. 11.

U.S. weather forecasts are worryingly dry for the eastern Corn Belt region, with drought conditions expanding in parts of Ohio, Indiana and Illinois, Peak Trading analysts said in a note. The expanding dryness is a particular threat for soybeans, which are still filling pods, Peak Trading said.

Seasonal demand for grains and oilseeds will likely stay subdued until early October. Any short-term rallies will be difficult to sustain, given limited export prospects at this time of year, good weather and remaining supply ahead of a record harvest.

Chicago wheat futures were up 0.85% at $5.32 a bushel on Monday, while corn rose 0.8% to $4.15 a bushel. Soybean prices were down 0.45% at $10.54 a bushel.

SOFT COMMODITIES: Agricultural softs have reported a relatively mixed performance over the past week, with coffee significantly higher and cocoa prices slipping in thin, volatile trading.

Arabica coffee futures rose more than 13% on week on a steady drawdown in U.S. coffee stocks and shifting dynamics due to persistent tariff disruptions, BMI analysts said in a note. In particular, the U.S. has imposed a 50% tariff on imports from top coffee producer Brazil.

While U.S. importers have shifted away from Brazilian imports for now, sustaining this trend long term poses substantial challenges and U.S. stockpiles will be rapidly depleted if the situation persists, BMI said.

Despite a decline in the year to date, cocoa prices remain historically elevated, supported by issues in powerhouse producers Ghana and Ivory Coast. Still, cocoa has declined on week as precipitation in West Africa, combined with an increase in U.S. stocks, pushed prices lower, Rabobank analysts said in a note.

On Monday, cocoa was 0.1% higher at $7,786 a metric ton, while coffee rose 1.7% to $3.85 a pound. Sugar fell 0.3% to $0.16 a pound.

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

(END) Dow Jones Newswires

August 25, 2025 10:21 ET (14:21 GMT)

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