Agricultural Commodities Post Uneven Performance as Soft Markets Remain Under Pressure

Key Takeaways

• Agricultural commodities finished the week mixed, with modest gains in select grains and oilseeds offset by sharp declines in soft commodities.
• Soybeans (+4.88%) and corn (+0.88%) advanced on a weekly basis, while wheat posted a modest gain (+0.29%).
• Soft commodities continued to weaken, led by orange juice (-17.47%), coffee (-11.77%), and cocoa (-1.33%).
• Industrial-linked commodities diverged, with wool (+0.72%) edging higher, while rubber (-1.67%) declined.
• Dairy markets remained volatile, with milk (+5.20%) and butter (+13.22%) rising, while cheese (-0.54%) remained under pressure.

Grains and Oilseeds Show Tentative Improvement Among Agricultural Commodities

Grain markets delivered a more supportive tone during the first full week of February, reversing some of the weakness seen in late January. Soybeans led the complex, rising +4.88% on the week, supported by improving monthly (+6.00%) and year-to-date trends. Corn also edged higher (+0.88%), though it remained negative on a year-to-date basis (-2.44%). Wheat posted a modest weekly gain of +0.29%, continuing to recover on a monthly basis despite remaining sharply lower year over year (-8.66%).

Secondary grains were mixed. Rice advanced +1.03%, extending its strong monthly (+9.45%) and year-to-date (+17.04%) performance. Oats slipped slightly (-0.16%), while barley remained flat for the week, reflecting limited short-term momentum.

Oilseeds and vegetable oils showed a broadly constructive tone. Canola rose +2.43%, supported by solid gains across monthly and year-to-date metrics. Rapeseed advanced +3.17%, while sunflower oil edged higher (+0.31%). Palm oil declined -1.16% on the week, giving back part of its recent gains.

Soft Commodities Extend Broad-Based Weakness

Soft agricultural commodities remained under sustained pressure. Coffee fell -11.77% on the week, while orange juice recorded the steepest decline (-17.47%), extending significant losses across all timeframes. Sugar slipped -0.83%, cotton declined -1.80%, and cocoa fell -1.33%, remaining deeply negative on a monthly and annual basis. Tea also weakened, declining -3.97% during the period.

Industrial and Dairy Commodities Diverge

Industrial-linked agricultural commodities showed mixed performance. Wool continued to trend higher, rising +0.72% on the week and remaining strongly positive year over year (+38.02%). Rubber declined -1.67%, while lumber fell -1.43% following recent strength.

Dairy markets showed renewed volatility. Milk rose +5.20% on a weekly basis, while butter posted a sharp gain (+13.22%), despite remaining significantly lower year over year. Cheese continued to struggle, declining -0.54%. Potatoes remained flat on the week but continued to post steep year-over-year losses.

Overall, agricultural commodities ended the week with uneven performance, as improving momentum in grains, oilseeds, and select dairy products was offset by continued weakness across soft commodities and industrial-linked markets.

Comparative Weekly Agricultural Commodities Performance