By Joe Hoppe

A roundup of key agricultural commodity markets for the week June 23-27 by Dow Jones Newswires in Barcelona.

GRAINS & OILSEEDS: The macro mood is mixed as the U.S. struck Iranian nuclear facilities, raising risk-off sentiment but equally adding volatility to crude oil prices.

Crude oil prices have been volatile after the U.S.'s weekend blow to Iran's nuclear infrastructure, briefly trading at more than $81 a barrel earlier Monday. Higher oil prices would in turn boost both the Brazilian real--a crucial commodity currency--and inflation expectations, a boon for agricultural markets. The U.S. dollar has also slid against a basket of other currencies, making it cheaper for international investors to buy dollar-denominated commodities.

However, the market has shifted into risk-off mode as Iran threatens to close the Strait of Hormuz in retaliation, a potential headwind for risk trades like agricultural commodities.

U.S. Corn Belt weather forecasts are hot, with mixed rains across the northern Corn Belt this week. The weather has been close to perfect, driving down corn prices, though there is still plenty of runway before harvest for weather to turn, particularly for soybeans, Peak Trading analysts said in a note.

A heat wave spanning most of the U.S. will see temperatures in the low-mid 90's, said John Stewart & Associates in a note. "The hot weather will be welcomed by a vast majority of the crop as growing degree days have been below average this year, and forecasted mid-late week rains look to ease possible crop stress."

Chicago wheat futures are down 2.6% at $5.69 a bushel on Monday, while corn is down 2.6% on $4.18 a bushel. Soybean prices are down 1.3% at $10.47 a bushel.

SOFT COMMODITIES: Agricultural softs have generally sold off over the last week of trading, with coffee and particularly cocoa declining.

Cocoa has slid 8% on week in thin trading, though prices remain historically elevated. Low volumes have increased the likelihood of volatile price swings as traders weigh concerns over weather conditions in West Africa.

Meanwhile, coffee prices have slid more than 4.5% over the last week on improved expectations for harvests in Brazil and Vietnam. In particular, Brazil has benefited from stronger-than-expected rains in key growing areas, easing drought concerns.

Sugar looks like the most cheap and oversold commodity on the market according to technical trading indicators, and this time of year is usually very bullish, Peak Trading said. This makes the crop look like a great value buy over the coming weeks and months, analysts write.

On Monday, cocoa is down 0.1% at $8,526.0 a metric ton, while coffee is up 3.1% at $3.25 a pound. Sugar is up flat at $0.17 a pound.

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

(END) Dow Jones Newswires

June 23, 2025 12:16 ET (16:16 GMT)

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