By Joe Hoppe

A roundup of key agricultural commodity markets for the week Sept. 2-5 by Dow Jones Newswires in Barcelona.

GRAINS & OILSEEDS: The macro mood is mixed, as a global bond selloff lowers risk sentiment despite mounting expectations for a U.S. interest rate cut.

Risk sentiment has soured, dragging down agricultural markets as concerns are raised following President Trump's move to oust Fed Governor Lisa Cook. Markets are awaiting a court ruling on whether Trump's bid to fire Cook is legitimate.

Still, expectations for a September U.S. interest rate cut have kept some degree of risk sentiment intact and partially capped losses. Fed Chair Jerome Powell opened the door to interest rate cuts in late August, improving the bull case for risk assets.

The U.S. dollar has gained against key currencies, making it more expensive for international purchasers to buy dollar-denominated goods. If Friday's nonfarm payroll data comes in softer, it would raise hopes for more and larger Fed interest rate cuts and weaken the dollar, boosting the purchasing power of key commodity currencies like the Brazilian real.

Meanwhile, on the weather front, U.S. weather forecasts point to cold temperatures. The western Corn Belt region will get some rain, but the driest areas of Illinois and Indiana will see little respite. Drought conditions are expanding and river levels are falling, bearish for soybean crops, Peak Trading analysts said in a note.

New U.S. corn export sales were strong for a fifth consecutive week, as were wheat sales. Still, China hasn't bought any new soybeans.

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 are down 1.6% at $5.26 a bushel on Tuesday, while corn is down 0.2% on $4.19 a bushel. Soybean prices are down 1.5% at $10.39 a bushel.

SOFT COMMODITIES: Agricultural softs have broadly fallen over the past week, with coffee, sugar and cocoa prices slipping in thin, volatile trading.

Arabica coffee futures have slid on week but are significantly higher on month, driven by U.S. import tariffs on Brazilian products. The 50% tariffs announced July 30 have created significant supply tightness, BMI analysts said in a note.

While U.S. importers have shifted away from Brazilian imports for now, sustaining this trend in the 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 amid uncertainty around market supply and demand. The International Cocoa Organization's Friday report for the crop year to the end of September had no figures for market balance, supply or demand due to a review of methodology and estimates. The latest figures for international cocoa market balances now date from February, which are likely no longer valid, Commerzbank analysts said in a note.

On Tuesday, cocoa is up 0.2% at $7,558 a metric ton, while coffee is down 3.5% at $3.73 a pound. Sugar is down 1.2% at $0.16 a pound.

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

(END) Dow Jones Newswires

September 02, 2025 12:19 ET (16:19 GMT)

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