Agricultural Commodities lead weekly gains but Daily action shows renewed selling pressure. 4-28-2025
Markets wrapped up a volatile week with strong gains in agricultural commodities and equity futures, while energy and metals lagged behind. Cocoa and coffee were the standout winners, jumping 12% and 6%, respectively. Meanwhile, the NASDAQ 100 climbed 6%, the S&P 500 gained 4%, and the Russell 2000 added 3%, reflecting broad optimism across risk assets.
However, energy markets struggled to find footing. Natural gas fell sharply, losing 9.49% for the week, while crude oil dropped 2.5%. Wheat also moved lower, down 3.42%, alongside a 1.89% decline in soybean meal. Overall, the Agriculture Index surged 8.48%, while the Energy Index declined 2.68%, highlighting the sector divergence that defined much of the week’s trading action.
Friday’s session built on some of these themes, with cocoa adding 2.86%, sugar gaining 1.85%, and lean hogs rising 1.23%. Precious metals, however, took a hit, with gold falling 1.50% and silver sliding 1.47%, as investors shifted out of traditional safe havens.
Today’s market action is adding new layers to the story. Natural gas is staging a powerful comeback, rallying 4.22% intraday. Traders are responding to updated weather models and storage data, fueling a sharp round of short covering that is helping lift prices after weeks of pressure. This rebound hints at a possible shift in sentiment in the broader energy complex.
Soft commodities, however, are facing renewed selling. Cocoa futures are down 5.06% intraday, likely a bout of profit-taking after recent strength. Wheat is falling another 3.21% not only extending its weekly losses but also breaking to fresh 4-week lows, a bearish technical signal as the growing season advances. Sugar is declining 2.20%, cotton is minus 1.63%, soybean meal eased 1.38%, and corn slipped 1.04%, painting a difficult picture for the agricultural sector.
The Livestock markets are providing a bright spot. Feeder cattle is up 0.59% breaking out to a new 4-week high. This move suggests steady underlying demand and some insulation from broader commodity volatility, at least for now.
Overall, the day’s action reinforces the idea that while agriculture commodities remain a focus for bearish momentum, volatility is still a major theme. The rebound in Natural gas could signal a brewing change within energy, even as crude oil remains under pressure.
Meanwhile, the sharp breakdown in wheat highlights ongoing challenges in the grain markets, setting the stage for another active trading week ahead.
Traders and investors will be watching closely to see if natural gas can extend its gains, whether agriculture commodities finds new buyers, and how livestock continues to perform against a backdrop of shifting macroeconomic signals.
The trading desk at stipelis 4-28-2025