Good morning!
Grains higher overnight on signs of U.S./China tariff de-escalation... Grain markets extended Thursday’s gains overnight, with soybeans poised to post big weekly gains. As of 6:30 a.m. CT, corn futures are trading 1 to 2 cents higher, soybeans are 3 to 6 cents higher and wheat futures are 4 to 6 cents higher. The U.S. dollar index is around 190 points higher and front-month crude oil futures are about 80 cents lower.
China exempts some U.S. goods from tariffs... China plans to exempt some U.S. imports from its 125% tariffs and is asking firms to identify critical goods they need duty-free. Reuters reported a commerce ministry taskforce is collecting lists of items that could be exempted from tariffs and is asking companies to submit their own requests, citing a person with knowledge of the situation. Beijing has not yet communicated publicly on any exemptions. A Friday statement by the Politburo, the Communist Party’s elite decision-making body, focused on efforts to maintain stability at home, by supporting firms and workers most affected by tariffs.
U.S. seeks India trade deal on ag goods, e-commerce and data storage... A U.S./India trade agreement under discussion will cover 19 categories, including greater market access for ag goods, e-commerce, data storage and critical minerals, Bloomberg reported. Terms of reference for a bilateral deal, which was finalized by both sides this week, includes trade in goods as well as services, the report said, citing people familiar with the matter.
Indonesia seeking ‘fair and square’ trade negotiations... Indonesia is prioritizing its national interests in its ongoing negotiations over American tariffs, its senior economic minister and top negotiator said, noting it wants a “fair and square” trade relationship with the United States. The minister refrained from sharing specific details about the negotiations but said the discussions included energy supply, U.S. market access for Indonesian goods, deregulation in Indonesia and critical mineral and technology sharing for agriculture, healthcare and renewable sectors. Indonesia has proposed increasing its imports from the U.S. by up to $19 billion by switching to U.S. suppliers for goods such as wheat, soybeans, liquefied petroleum gas and crude. It has also offered to reduce non-tariff barriers and proposed some tax cuts for U.S. goods.
Trump says he will announce trade deals over three to four weeks... President Donald Trump says his administration will announce trade deals “over the next three to four weeks.” Some countries “may come back and ask for an adjustment, and I’ll consider that,” Trump told Time magazine. The interview underscores that Trump is still the final word – or he views himself as the final word – on trade policy.
Hassett details global trade negotiations, tariffs and tax policy... Kevin Hassett, Director of the National Economic Council, appearing on Fox Business, emphasized the unprecedented pace and breadth of global trade negotiations under President Donald Trump. He described a week filled with back-to-back meetings with foreign ministers and finance officials from virtually every country, highlighting the administration’s active and strategic engagement on the world stage. According to Hassett, the White House has received an overwhelming number of requests for bilateral meetings, with a list of countries seeking talks with President Trump that spans three single-spaced pages. He reported the U.S. now has 18 written offers from countries proposing significant trade deals designed to benefit American workers. He stressed that the administration’s approach is not about isolating China but about building a coalition of trading partners who share concerns over China’s industrial overcapacity and non-market practices. The EU is particularly concerned about the risk of Chinese goods, blocked by U.S. tariffs, flooding European markets and destabilizing local industries. Hassett pushed back against the notion the Trump administration’s trade policy is reactive or haphazard. He explained that the White House and its allies had been preparing detailed action plans since Jan. 20, well before the public announcement of tariffs. This groundwork, he argued, allowed the administration to move quickly and secure multiple promising trade offers.
Ukraine’s planting pace lags after cold early April... Ukrainian farmers have sown 2 million hectares of grain as of April 24, including 702,100 hectares of spring barley, 199,800 hectares of spring wheat, 705,000 hectares of corn, 201,800 hectares of peas and 154,200 hectares of oats, the agriculture ministry said. The planting pace was 17% less than at the same date in 2024 after a slow start due to cold weather early this month.
French wheat crop conditions decline... France’s ag ministry rated the country’s wheat crop as 74% good/excellent as of April 21, down one percentage point from the previous week. A lack of rain in northern France in recent weeks has become a concern, though some rains fell this week.
CME Group resets daily price limits for grain/soy futures... Effective May 1, Chicago Board of Trade daily trading limits will be 35 cents for corn (up from current 30 cents), 75 cents for soybeans (up from 70 cents), 40 cents for SRW, HRW and HRS wheat (unchanged), $20.00 for soymeal (unchanged) and $0.030 for soyoil (unchanged). Daily price limits are reset twice per year – on May 1 and Nov. 1.
North Dakota enacts pesticide label shield law... North Dakota became the first U.S. state to enact a law that limits state-level pesticide label regulations, granting legal protection to manufacturers like Bayer from failure-to-warn lawsuits if labels are approved by EPA. This move aligns with Bayer’s national lobbying campaign for the Agricultural Labeling Uniformity Act, a federal bill that would preempt state warning requirements and is supported by over 360 agricultural groups. Backed by lawmakers from agricultural states, the initiative is framed as a safeguard for farmers and food security. Critics, including environmental and consumer health groups, argue it undermines local protections, restricts legal recourse for victims, and prioritizes corporate liability protection over public health. Similar legislation is advancing in states like Georgia, while the federal bill is being considered in the new farm bill.
USDA withdraws Biden-era salmonella rule for poultry after legal pushback... USDA’s Food Safety and Inspection Service (FSIS) has officially withdrawn the proposed “Salmonella Framework for Raw Poultry Products” rule, which would have declared certain chicken and turkey products with Salmonella as “adulterated.” The agency cited the need for further review after receiving nearly 7,100 public comments, many questioning FSIS’s legal authority to impose new product standards. The proposal, published in August 2024 with the comment period ending in January 2025, was considered a landmark food safety initiative. FSIS reaffirmed its commitment to reducing Salmonella-related illnesses but acknowledged that the volume and substance of comments necessitate reassessing its regulatory approach. Critics of the withdrawal argue it stalls needed protections, while the industry and legal analysts await signals on any next steps from the Trump administration.
Still waiting for active cash cattle trade... Cash cattle negotiations remained at a standstill on Thursday, with packers trying to buy cattle at lower prices given highly negative margins and feedlots seeking higher bids. Strength in cattle futures this week suggests higher cash prices are likely.
Pork cutout joins cash index in strengthening... Pork cutout firmed $1.78 to $95.86 on Thursday, as all cuts except bellies strengthened. The CME lean hog index is up another 52 cents to $87.27 as of April 23, the sixth straight daily gain.
Overnight demand news... South Korea purchased 60,000 MT of non-GMO corn from an unspecified origin. Iran bought 60,000 MT of feed barley, likely to be sourced from the EU or Black Sea region, but made no purchases of corn or soymeal.
Today’s reports
- 10:00 a.m. Food Price Outlook — ERS
- 2:00 p.m. Dairy Products - Annual — NASS
- 2:00 p.m. Peanut Prices — NASS
- 2:00 p.m. Peanut Stocks and Processing — NASS
- 2:00 p.m. Poultry Slaughter — NASS
- 2:30 p.m. Commitments of Traders — CFTC