AGS WEEK AHEAD : Macro Mood in Focus Ahead of Fed Rate Decision

By Yusuf Khan

A roundup of key agricultural commodity markets for the week of September 19-23 by Dow Jones Newswires in London.

GRAINS & OILSEEDS

Macroeconomic indicators remain the key focus for agricultural commodities this week with the Federal Reserve's decision on interest rates expected Wednesday.

"Macro indices are in risk-off mode ahead of Wednesday's Fed decision," Peak Trading Research said in a note.

Equities and the Brazilian real were falling due to the weak macro sentiment, with a 75 basis point hike by the Fed expected, Peak said.

That said, wheat and corn markets are finding some support as no resolution to Putin's comments on the grain corridor has been found. Mixed weather during the U.S. harvest is also aiding this.

Chicago-wheat futures are 2.7% lower at $8.37 a bushel on Monday. Corn is down 0.7% to $6.72 a bushel.

SOFT COMMODITIES

The macro mood is also shaping soft commodities, especially sugar. The price for crude falling and a higher U.S. dollar is helping to curtail prices, despite potential supply issues from India.

Two potential supply problems were holding up the market, according to Marex's Robin Shaw. Firstly, if Indian supply of raw cane is cut, this could lead to tightness or a deficit in the market. and secondly, the potential of more sugar shortages in 2023, he said.

However, the market, at the moment, is being "held up by potential, rather than actual supply problems," Shaw said.

Prices for coffee in New York were down 0.2% at $2.15 a pound on Monday, raw sugar was down 1.1% to $0.17 a pound while cocoa was up 0.5% to $2,371 a metric ton.

Write to Yusuf Khan at [e-mail]

(END) Dow Jones Newswires

09-19-22 1011ET