Key facts
- US is considering a 25% tariff on Brazil due to unfair trade practices.
- A higher-than-expected jobless report negatively impacted commodity markets.
- Favorable condition ratings for corn and soybeans pressured their prices.
- Geopolitical developments, including attacks between Israel and Hezbollah, weighed on markets.
Futures markets experienced selling pressure, particularly in the agricultural sector, following news that the United States was considering imposing a 25% tariff on Brazil due to alleged unfair trade practices. This development, coupled with a jobless report that exceeded expectations, negatively affected the broader commodity complex. Corn and soybean prices were further pressured by favorable crop condition ratings, although these ratings were below average trade estimates. Geopolitical uncertainties also played a role, with reports of overnight attacks between Israel and Hezbollah occurring shortly after the White House indicated a de-escalation of fighting. Despite initial selling, the market saw some recovery as the trading session progressed, with spread trading emerging. July CBOT corn fell to test April's low at $4.38 on the continuation chart, influenced by ongoing South American harvesting and rising production estimates.