Commodities and Stocks Rebound on Trade Hopes

Global Trade Talks Fuel Market Recovery

In the AG Commodity Corner+ podcast for May 2nd 2025, Chief Commodity Strategist Moe Agostino and Abhinesh Gopal discuss the market's positive response to trade optimism, which has helped offset concerns over a 0.3% decline in U.S. GDP in Q1 of 2025—the first decline in three years.

Stock indices, including the S&P 500, have experienced a notable rebound, marking the longest streak of daily gains since 2004. This resurgence is attributed to better-than-expected employment figures and a de-escalation in US-China trade negotiations.

In the commodities sector, July corn futures closed down 10 cents, while canola reached new contract highs. Chicago wheat prices dipped to new lows before recovering, and both live and feeder cattle continued their upward trends.

The weather outlook remains favorable for planting, with warm and dry conditions expected in the Midwest and above-normal precipitation in the South. This has contributed to a record pace in soybean planting, with 18% of the crop already planted.

Soy oil prices have been supported by strong demand and anticipated biofuel policies, while canola exports have met annual targets ahead of schedule, suggesting potential price rationing.

Geopolitical developments, including US sanctions on Iranian oil and a new US-Ukraine deal on rare earth minerals, have influenced crude oil prices, which saw their largest monthly drop since 2021.

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