By Joe Hoppe

A roundup of key agricultural commodity markets for the week Jan. 27-31 by Dow Jones Newswires in Barcelona.

GRAINS & OILSEEDS: The macro mood is mixed as the U.S. dollar declined on the Trump administration's delay to proposed tariffs, though trade war threats still loom large.

Key commodity currencies like the Brazilian real, Chinese yuan and Australian dollar gained against the greenback over the prior week after President Trump declined to immediately implement threatened tariffs on China, Canada and Mexico, Peak Trading analysts say in a note. The weaker dollar will make it more attractive for international buyers to purchase dollar-denominated commodities.

Grains futures sold off on Monday, however, as the U.S. and Colombia narrowly avoided a trade war, reminding the market that tariffs on Mexico and Canada are still set for Feb. 1.

Trump had issued tariff threats in retaliation for the Colombian government refusing to allow two military planes with migrants to land. He changed course later, with the White House saying Colombia had agreed to all of Trump's terms, including to repatriate migrants into the country.

Market attention is now on Wednesday's Federal Reserve meeting. The Fed won't cut interest rates, but Fed Chair Jerome Powell's press conference comments will affect agricultural markets through the dollar and overall risk tone, Peak Trading says.

Meanwhile, on the weather front, forecasts point to near-normal rainfall in Argentina over the next 10 days, which will help stabilize production prospects. In Brazil, rains are delaying early harvest and driving concerns over corn planting.

Chicago wheat futures are down 1.5% at $5.36 a bushel on Monday, while corn is down 1.3% on $4.80 a bushel. Soybean prices are down 0.8% at $10.47 a bushel.

SOFT COMMODITIES: Agricultural softs have gained over the past week, with both arabica and robusta coffee gaining just over 6%.

Arabica coffee prices hit a record level earlier in the session, as traders digest the withdrawal of Trump's threats to Colombia, a supplier of around 30% of U.S. coffee imports. Arabica set a fresh record of $3.56 a pound earlier in the session, exceeding the prior record of $3.48 a pound set in early December.

Arabica prices had accelerated in late 2024 when concerns over Brazil's production--amid adverse weather lowering the crop size--gathered momentum, Saxo Bank's Ole Hansen said.

Cocoa prices also increased in thin trading as dry conditions in powerhouse producers Ivory Coast and Ghana threatened bushfires and the withering of pods on trees, increasing market supply fears, Rabobank's Oran van Dort writes.

On Monday, cocoa is up 0.5% at $11,432 a metric ton, while coffee is up 0.4% at $3.49 a pound. Sugar is up 0.9% at $0.19 a pound.

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

(END) Dow Jones Newswires

January 27, 2025 12:44 ET (17:44 GMT)

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