AGS WEEK AHEAD: Black Sea Tensions, Fed Interest-Rate Decision in Focus
January 30 2023 - 11:41AM
Dow Jones News
A roundup of key agricultural commodity markets for the week of
Jan. 30-Feb. 3 by Dow Jones Newswires in London.
By Yusuf Khan
GRAINS & OILSEEDS
Attention this week is focused on the Black Sea as tensions in
the region escalate, adding to worries over grain shipments.
"Escalations to the war in Ukraine, driven by Germany, the U.S.
and the U.K. all pledging to supply battle tanks, added some
support to wheat markets towards the end of last week," the
U.K.-based Agriculture and Horticulture Development Board said in a
"While Black Sea exports remain very competitive on the export
market, uncertainty around future export prospects have been
creeping in," AHDB said, adding that the lack of area being planted
in Ukraine due to the war is raising questions as to how long cheap
exports can continue.
Elsewhere, markets will be looking to Wednesday and how the
Federal Reserve positions itself on interest rates. The dollar
would likely move on the back of a decision and so in turn should
affect grain prices, according to Peak Trading Research.
Argentina continues to see more rain, helping soybean prospects
in the region.
Chicago-wheat futures are up 0.2% to 7.51 a bushel, on Monday
while corn is 0.2% lower to $6.82 a bushel.
In terms of soft commodities, cocoa has been seeing weakness
amid lower demand. Lower cocoa grinding in the EU, Asia and the
U.S. all pointed to weaker demand for chocolate, Rabobank said in a
That said, according to Marex's Robin Shaw, sugar prices may
rise. "World supply is in deficit now. For it to go into surplus
later we need all four major crops - India, Thailand, EU and CS
Brazil - to be on target. But in fact two of them, India and the
EU, are already looking very shaky, and I hear rumblings about
Thailand," he said.
Brazil was likely to have a strong cane crop, but lower rains
could stop harvesting, Mr. Shaw said.
Coffee futures in New York were up 0.1% to $1.70 a pound, raw
sugar was 1.4% higher at $0.21 a pound while cocoa was 0.15 lower
at $2,625 a metric ton.
Write to Yusuf Khan at firstname.lastname@example.org
(END) Dow Jones Newswires
January 30, 2023 11:26 ET (16:26 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.