There has already been some relief in diesel prices following the release of emergency diesel stocks over the next four months. While prices have at least stopped rising, it remains uncertain how much further they may fall. Additionally, many farmers secured their diesel supplies before harvest and have already paid record-high prices.
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It's not just Iowa, many areas of the western Corn Belt have been hit by record rains the last month as a result of El Nino driven weather patterns. Not only has the excessive rain delayed harvest, but farmers are also seeing standability issues and increased disease pressure which has cut yield, plus quality issues are arising in both corn and soybeans.
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While many important Titles of the farm bill were handled in the One Big Beautiful Bill there are some key titles that expired and need renewal. Chairs of the House and Senate Ag Committees are hoping to get a permanent farm bill across the finish line before year end, with some other important provisions for farmers.
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The Secretary of State stops at the World Dairy Expo in Madison, Wisconsin. An Illinois dairy family wins a prestigious award at the Expo — and that award is extra special, as the family rallies to overcome a traumatic health injury.
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The American Soybean Association expressed disappointment that U.S. soybeans did not see the cut in China's 10% reciprocal tariffs like other ag goods. So far China has bought over half of their soybean commitments for this year. But as farmers start harvesting that crop they're counting on China's pledge to buy at least 25 million tons of U.S. soybeans annually through 2028.
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Details on the deal with China released: China did cut the 10% reciprocal tariffs on all ag goods, even soybean products like meal and oil. However, soybeans were notably absent from the detailed plan to cut tariffs as a leverage tool for future talks. Plus, China failed to provide details on the pro-rated $17 billion of additional ag goods which was a letdown for the market.
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Farmers in the Southwestern U.S. devasted by record heat and drought this season are finally seeing a change in the weather pattern. While this year's crop is a disaster, the moisture is coming at the right time for them to plant hard red winter wheat and when combined with strong crop insurance guarantees its providing some optimism.
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President Donald Trump welcomed Chinese President Xi Jinping to the U.S. with a lot of fanfare. The real question is what's being decided underneath the pomp and circumstance.
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While harvest pace nationally was ahead of average this week at 13% on corn and 12% on soybeans, it doesn't tell the whole story. Currently farmers in the Southern Midwest are running 15% to 25% ahead of normal due to hot dry conditions, while farmers in the western Midwest are starting to fall behind due to wet conditions.
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The markets are watching the U.S. China Summit, plus President Trump's meetings with Ukraine President Zelensky and Iran officials with hopes of an end to both the Iran and Black Sea conflicts. Just the prospects for peace in Trump's speech at the U.N General Assembly weighed on energy, wheat and corn markets on Tuesday.
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