By Joe Hoppe

A roundup of key agricultural commodity markets for the week June 16-20 by Dow Jones Newswires in Barcelona.

GRAINS & OILSEEDS: The macro mood is mixed as a weakening in the U.S. dollar has been offset by a wider risk-off tone on flaring geopolitical tensions and benign weather forecasts.

The U.S. dollar has slid against a basket of other currencies, making it cheaper for international investors to buy dollar-denominated commodities.

Crude oil pushed sharply higher on Friday after Israel and Iran traded blows, in turn pulling up the Brazilian real--a crucial commodity currency--and inflation expectations, a boon for agricultural markets. However, Iran signaled Monday that it wants to de-escalate hostilities and negotiate, reversing some of oil's gains.

Wednesday will see the Federal Reserve's decision on U.S. monetary policy. The Fed isn't expected to cut interest rates, but the tone of Chair Jerome Powell's press conference will be closely monitored for hints on the Fed's wider outlook.

U.S. Corn Belt weather forecasts look warm with scattered storms, ideal weather for early crop development, Peak Trading analysts said in a note. That said, there are increasing concerns about dryness in the western Corn Belt, Peak Trading analysts said in a note.

U.S. export sales were weak last week, with corn exports at the lower end of expectations and soybeans at a marketing year low. June is the most bearish month of the year for agricultural markets, with corn futures falling every June for the last 12 years, Peak Trading said.

Chicago wheat futures are down 1% at $5.38 a bushel on Monday, while corn is down 2.5% on $4.34 a bushel. Soybean prices are down 0.3% at $10.67 a bushel.

SOFT COMMODITIES: Agricultural softs have had a mixed performance over the past week of trading, with cocoa and particularly coffee declining and sugar recording some gains.

Cocoa has slid 2.3% on week in thin trading. Low volumes have increased the likelihood of volatile price swings as traders weigh concerns over weather conditions in West Africa. Cocoa deliveries appear to have lost considerable momentum in recent months, which together with reports of quality problems with cocoa beans could explain why prices remain historically elevated, Commerzbank analysts said in a note.

Coffee prices meanwhile have slid nearly 6% over the last week alone, reversing all gains made earlier in June on a decline in stockpiles. Historically this is the most seasonally bullish time of year for coffee prices, and the crop remains up 6.5% in the year-to-date on supply concerns.

On Monday, cocoa is down 0.6% at $9,215 a metric ton, while coffee is down 1.7% at $3.40 a pound. Sugar is up 1.15% at $0.17 a pound.

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

(END) Dow Jones Newswires

June 16, 2025 12:28 ET (16:28 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.