Commodities face a generalized decline this Friday (31) on international exchanges, with grains on the Chicago Stock Exchange leading losses among agricultural commodities. Around 9:30 am (Brasília time), grain futures corn It's from wheat were down almost 2% on the CBOT, with March being quoted, respectively, at US$ 4.81 and 5.55 per bushel. The movement also helped to pressure soybeans, which were down 0.6%, to US$ 10.37 also in March.
On the New York Stock Exchange, soft commodities were also trading in the red, with coffee taking profits, losing more than 1% and taking the others along for the ride. Also in New York and London, oil futures were falling, both in WTI and Brent.
Trump Effect: Tariffs Impact Agricultural Markets
Donald Trump's tariff policies are beginning to take shape and are having a general impact on markets, especially grains this weekend. The American president said on Thursday night (30) that he will tax Mexico and Canada by 25% and corn should be one of the most affected sectors, since Mexicans are one of the largest buyers of North American grain.
In addition, traders continue to speculate about how relations between the United States and China will develop and, in particular, how this will affect the soybean trade. The Chinese, especially state-owned companies, stepped up their purchases of American oilseeds before Trump took office, and now the Asian nation's demand is concentrated in Brazil.
The arrival of the new Brazilian supply is currently facing delays. Excessive rainfall is compromising harvesting work in some regions, especially in Mato Grosso. Even so, Chinese interest in purchasing remains strong. Demand in the Asian country is adapting to the scenario and remains firm. In addition, China is well supplied at least for the next month. And this inevitably ends up being another factor putting pressure on soybean prices on the CBOT.
Weak exports, Lunar New Year and dollar pressure commodities
Yesterday, weekly sales figures for exports of the US commodity came in below market expectations, already signaling this shift in demand.
While China is always in the market spotlight, its lack of new trading this week has a significant impact. The reason is the celebration of the Lunar New Year, which began on January 29. The pause in Chinese trading is also weighing on the commodity market overall.
The markets are also feeling the pressure of a new rise in the dollar in the external scenario. This Friday morning, the index was up 0.4%, returning to the 108-point level. “With the tariffs, the dollar is rising against the currencies of emerging countries,” explains the Agrinvest Commodities team. In Brazil, however, the dollar is falling once again and, at around 10:10 am (Brasília time), it was down 0.3% to R$ 5.85.
Source: Carla Mendes | Notícias Agrícolas
