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The battle of Greenland appears to be over, at least for now, sparking a relief rally across global financial markets.
In an eagerly anticipated speech at the World Economic Forum’s annual meeting in Davos, Switzerland, Trump ruled out using force to take Greenland and didn’t mention the tariffs he had previously threatened to impose on European countries over the issue. Late Wednesday, Trump said he wouldn’t impose the tariffs after reaching an agreement on a “framework” deal.
“Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump posted on Truth Social. “This solution, if consummated, will be a great one for the United States of America, and all NATO Nations. Based upon this understanding, I will not be imposing the Tariffs that were scheduled to go into effect on February 1st.”
Stocks reclaimed a big chunk of a Tuesday rout sparked by growing fears of a new kind of trade war – or worse – over Greenland, with the Dow Jones Industrial Average rising nearly 600 points as the S&P 500 and Nasdaq Composite each gained over 1%. Gold futures retreated from an all-time high, while the U.S. dollar index, which got shellacked on renewed “sell America” sentiment, edged back to the upside.
Soybeans, meanwhile, got a lift Wednesday while wheat and corn slipped, perhaps helped by remarks from other Trump administration officials also making the rounds in Davos (see below).
No farm aid in funding bills… Farm leaders urged lawmakers to work quickly to include additional aid for farmers and language aimed at allowing year-round use of 15% ethanol blended gasoline, or E15, in appropriations bills being drafted this month.
“Members of Congress on both sides of the aisle have assured us in recent weeks that they recognize more aid is needed to keep our food supply strong, which requires a strong agricultural sector,” said American Farm Bureau Federation President Zippy Duvall, in a statement. “Many have also voiced strong support for approving year-round E15 fuel, which would be a win-win for consumers and farmers by reducing the price of fuel at the pump while increasing demand for both corn and sorghum.
“The target for months has been to include both priorities in the government funding package. So, it was a shock to see bill text proposed by the House that includes neither,” Duvall wrote. “There is still time. Congress must act.”
Specialty Crop Farm Bill Alliance leaders also expressed disappointment, and were still chafing after aid announced last year allotted just $1 billion out of a $12 billion package to specialty crops. Details on specialty-crop payments are still awaited.
Alliance co-chair Cathy Burns of the International Fresh Produce Association told Brownfield Ag Network that last year’s package should have set aside no less than a third of funds for specialty crop producers. “Specialty crops account for one-third of crop sales in the U.S., and we have the same harmful headwinds that the rest of agriculture is experiencing,” Burns said.
She told the radio network that $5 billion in relief would help alleviate some of the unprecedented economic challenges facing growers from labor, input costs, lost markets, and unfair competition from competitors.
Soybeans erase post-WASDE losses… March soybeans rose 11 1/2 cents to $10.64 ½, erasing the loss seen after last Monday’s USDA crop production and world supply/demand reports. The rally was tied in part to remarks by U.S. Trade Representative Jamieson Greer, who said late Tuesday in an interview that he and Treasury Secretary Scott Bessent may take part in further talks with their Chinese counterparts ahead of a planned meeting between Trump and Chinese leader Xi Jinping in April.
Bessent on Tuesday said he had a meeting with his Chinese counterpart in Davos and that Beijing has “done everything that they said they’re going to do,” including purchasing 12 million metric tons of soybeans by an end-of-February deadline. Bessent, according to the South China Morning Post, said Washington is looking forward to China buying some 25 million tons in 2026 before adding that Beijing could make the US president happier if it were to “buy a little more”.