Good afternoon and welcome to Markets Desk, your midday read on what's moving.
In the energy complex, crude oil is pushing higher as US-Iran tensions continue to escalate, with July WTI up roughly half a percent and RBOB gasoline posting a one-week high, up nearly one and a half percent. Geopolitical risk premiums are back in the price, and traders are watching the situation closely for any further deterioration.
Turning to soft commodities, coffee is the standout mover today. July arabica is up over two percent and robusta is surging more than three percent to one-week highs, after forecaster Vaisala flagged moderate to heavy rainfall across Brazil's key growing regions. Persistent wet weather is delaying the harvest, tightening near-term supply expectations and sending buyers back into the market.
In the grains, wheat is holding firm after the USDA trimmed its production estimates. Kansas City hard red winter contracts are leading the complex, up between one and nearly four cents, while Chicago soft red winter is the laggard with fractional losses. The production cut is lending just enough fundamental support to keep the bulls engaged, though the rally remains measured.
That's the tape. Markets Desk, signing off the floor.
