Soybean and corn futures rose sharply on Thursday as a new tax policy in Brazil was expected to impact global agricultural trade. Brazilian soybean and cotton companies criticized an executive order that will tighten the rules for using tax credits, arguing it will make them less competitive in international markets.
The Brazilian news also helped push corn futures higher, breaking an eight-session losing streak. Traders were weighing the impact of the policy change on US exports, as Brazil is a major competitor in global agricultural markets.
In the grain markets, wheat futures were mixed as concerns about crop damage in Russia were balanced by expectations of a high-quality US winter wheat harvest. Soybean and soybean meal futures also climbed, with the soybean contract reaching the $12 per bushel level.
Crude oil prices continued their upward trajectory, supported by hopes that the Federal Reserve may cut interest rates later this year. US equity markets were mixed, with the Dow Jones Industrial Average and S&P 500 posting modest gains, while the Nasdaq Composite declined slightly.
The US dollar index weakened on Thursday, and gold prices advanced to a two-week high as weaker-than-expected US jobs data fueled expectations of a potential Fed rate cut.
