By Yusuf Khan


A roundup of key agricultural commodity markets for the week of April 3-7 by Dow Jones Newswires in London.


GRAINS & OILSEEDS

Markets remain volatile this week, on conflicting bearish and bullish signals to prices.

A bullish macroeconomic environment as well as rising prices for crude oil are helping to provide support, especially for oilseeds, according to Peak Trading Research. In a note, Peak said that lower bank risk on top of soft inflation data was helping to improve macro sentiment.

Peak added that "OPEC's surprise production cut announcement will be another pillar of support," with rising oil prices often a tailwind for goods like vegetable oils that can be used as biofuels.

However, the U.K.'s Agriculture and Horticulture Development Board said in a note that Russian exports of wheat are helping to keep a cap on gains, with low prices being offered at export.

AHDB also pointed to data from the U.S. showing prospective plantings in the country showing larger than expected growth in terms of area planted. "All wheat plantings for 2023-24 were larger than analysts expected at 20.2 million hectares, up 9% on the year."

Fitch Solutions also maintained its price forecast for soybeans in 2023 at $14.30 a bushel. It said that while strong demand from China was likely to provide support, a record crop from Brazil should keep prices stable. Prices today are at $15.22 a bushel in Chicago.

Key this week also will be Friday's nonfarm payrolls number and how this influences Federal Reserve policy and the entire macro environment.

Chicago-wheat futures are up 2% to 7.06 a bushel on Monday, while corn is 1.1% higher at $6.68 a bushel.


SOFT COMMODITIES

In terms of soft commodities, cocoa prices remain well supported over concerns on supply from Ivory Coast, with data from ICE showing that NY cocoa gained 3% last week, according to Rabobank. The bank added that "Managed Money bought 30,604 net lots to a 51,125 net lot position. This was the largest weekly net purchase on record."

For sugar, Marex's Robin Shaw said that the market remains finely balanced.

Mr. Shaw said that 2023 was meant to relieve the tight supply situation of 2022, but that crops have been disappointing in most regions bar Brazil - the world's largest producer. Supply remains tight and there are severe risks that it will get tighter due to the effects of El Nino or logistic issues hitting Brazilian sugar shipments, he said.

Arabica coffee futures in New York were up 4.2% to $1.78 a pound, raw sugar was 1.1% higher at $0.22 a pound while cocoa was 1.5% lower at $2,890 a metric ton.


Write to Yusuf Khan at yusuf.khan@wsj.com


(END) Dow Jones Newswires

04-03-23 1041ET