Good morning!
Soybeans continue to strengthen... Soybeans built on gains the two previous sessions during overnight trade, while corn rebounded from recent losses and wheat traded mostly lower. As of 6:30 a.m. CT, corn futures are trading 1 to 2 cents higher, soybeans are 4 to 6 cents higher and wheat futures are unchanged to 3 cents lower. The U.S. dollar index is more than 500 points lower, gold futures are around $60.00 higher and front-month crude oil futures are about 70 cents higher.
China says there are no tariff negotiations with Washington... China denied President Donald Trump’s assertion the two sides were involved in active negotiations over tariffs. “China’s position is consistent and we are open to consultations and dialogues, but any form of consultations and negotiations must be conducted on the basis of mutual respect and in an equal manner,” said a ministry of commerce spokesperson. “Any claims about the progress of China/U.S. trade negotiations are groundless as trying to catch the wind and have no factual basis.” China also made it clear that talks should involve the cancellation of all tariffs it currently faces.
Trump targets Chinese cranes, raising costs and risks for U.S. ports... The Trump administration is proposing tariffs of up to 100% on Chinese-made ship-to-shore cranes, containers and related parts — equipment that no U.S. firm currently manufactures. Port officials warn this move could severely burden marine terminal operators and ripple across global supply chains. Gene Seroka of the Port of Los Angeles noted that shifting to non-Chinese suppliers would take a decade due to limited global alternatives and the need for new manufacturing infrastructure. The American Association of Port Authorities opposes the tariffs, calling them “a crippling tax on port development.” Maintenance of the nearly 50 Chinese cranes already in use at key U.S. ports would also become more costly, with higher equipment and transport expenses likely to be passed on to consumers. A U.S. Trade Representative hearing on the proposed duties is set for May 19.
Trump denies U.S. officials mull easing tariffs targeting the auto industry... The Trump administration is considering whether to reduce certain tariffs targeting the auto industry that carmaker executives have warned would deal a severe blow to profits and jobs, Bloomberg reported. One measure would spare automobiles and parts already subject to tariffs from facing additional duties from levies on steel and aluminum imports, according to people familiar with the matter. That would eliminate so-called “stacking” of levies. Another option being studied would fully exempt auto parts that comply with the U.S.-Mexico-Canada Agreement. The Financial Times earlier reported the Trump administration is considering reducing tariffs on auto parts — and that they might also exempt auto parts bought from China from a 20% tariff applied to the country over a dispute over fentanyl. Trump said he’s not considering changes to tariffs on autos and auto parts.
Weekly Export Sales Report out this morning... For the week ended April 17, traders expect:
| 2024-25 expectations (in MT) | Last week (in MT) | |
| Corn | 800,000-1,300,000 | 1,561,916 |
| Wheat | (150,000)-200,000 | 76,497 |
| Soybeans | 200,000-600,000 | 554,806 |
| Soymeal | 150,000-350,000 | 146,245 |
| Soyoil | 5-25,000 | 10,275 |
April weather favorable for Ukraine’s crops... Warmer temps in mid-April were mostly favorable for development of winter and spring grains in most of Ukraine, state meteorologists said. Soil moisture was generally sufficient to offset a lack of rainfall.
India’s sugar exports likely to fall short of allowed levels... India is likely to export 600,000 to 700,000 MT of sugar in the 2024-25 marketing year through September, a member of the Indian Sugar & Bio-Energy Manufacturers Association said. Since the government set the export allowance of 1 MMT of sugar exports for 2024-25 in January, sugar output forecasts from industry groups have declined, raising concerns of potential supply shortages.
Biofuels group urges EPA to boost 2026 RVOs amid surge in U.S. production... The Advanced Biofuels Association (ABFA) met Wednesday with EPA officials to advocate for a higher 2026 Renewable Volume Obligation (RVO), citing record domestic production capacity. According to a Lipow Oil Associates report, U.S. producers generated nearly 4.9 billion gallons of advanced biofuels in 2024 and could reach 7.2 billion gallons in 2025. ABFA President Michael McAdams urged EPA to raise the 2026 RVO to 5.75 billion gallons to align with the Trump administration’s energy dominance agenda.
DOI approval time for energy projects cut to 28 days... The Trump administration said it would implement an emergency permitting process for energy and mining projects on federal lands, slashing approval times that typically take months or years to at most 28 days. The U.S. Department of the Interior (DOI) move is in response to President Donald Trump’s national energy emergency declaration, which he made on his first day in office, to speed permitting in an effort to boost domestic energy supplies, bring down fuel prices and bolster national security. DOI said the emergency procedures would apply to fossil fuels like oil, gas and coal, uranium, geothermal, critical minerals, biofuels and kinetic hydropower projects. It did not list solar energy or wind energy.
Bessent urges IMF, World Bank to refocus on core mission... In a forceful address at the Institute of International Finance on Wednesday, Treasury Secretary Scott Bessent called for the International Monetary Fund (IMF) and World Bank to abandon what he termed “mission creep” — specifically efforts related to climate change, gender equity and social policy — and return to their foundational roles focused on monetary stability, trade and development. “The IMF was once unwavering in its mission… Now it devotes disproportionate time and resources to work on climate change, gender, and social issues,” Bessent said. “These issues are not the IMF’s mission.” Framing his remarks within the Trump administration’s “America First” doctrine, Bessent emphasized the U.S. seeks greater leadership, not retreat, in shaping global financial institutions. He advocated for “rebalancing” both in trade and institutional priorities. On China, Bessent reiterated the administration’s core argument: “China needs to change. The country knows it needs to change. Everyone knows it needs to change.” He framed structural rebalancing of global trade as central to economic and geopolitical stability.
China to inject liquidity in financial system... China’s central bank said it would inject 600 billion yuan ($82.34 billion) worth of liquidity into the financial system via its medium-term lending facility (MLF) on Friday. With 100 billion yuan of MLF loans due this month, the People’s Bank of China will inject a net 500 billion yuan via the one-year lending tool into markets.
China to allow foreign investors access to more sectors... China’s state regulator and planning council published the 2025 list of areas foreign investors are allowed entry, reducing the number of restricted industries to 106 from 117. The so-called negative list specifies industries where activities by foreign investors are either restricted or prohibited. It was first issued in 2018 by Beijing. The relaxation comes as U.S. tariffs threaten more pressure on China’s economy, which is already reeling from weak domestic consumption and a debt crisis in the property sector.
Cold Storage Report out this afternoon... USDA will detail frozen meat stocks at the end of March. The five-year average is a 10.7-million-lb. decline in beef stocks and a 7.7-million-lb. drop in pork stocks during the month.
USDA reauthorizes dairy forward pricing program through 2025... USDA’s Agricultural Marketing Service has reauthorized the Dairy Forward Pricing Program (DFPP), which had expired in September 2024. Under the final rule published in the Federal Register, milk handlers can now enter DFPP contracts through Sept. 30, 2025. These contracts will remain valid until Sept. 30, 2028. The program, revived under the American Relief Act of 2025, permits negotiated pricing for non-fluid milk classes (II, III, IV) under the Federal Milk Marketing Order system, excluding Class I (fluid) milk.
Slow developing cash cattle negotiations... There hasn’t been enough cash cattle activity to establish a trend for the week. Packers want to buy cattle at lower prices given highly negative margins. Feedlots are hopeful of higher prices again after a nearly $4.00 jump last week.
Cash hog index picking up steam... The CME lean hog index firmed another 67 cents to $86.75 as of April 22, the fifth straight daily gain during which the index is up $1.66. Most lean hog futures eased a little on Wednesday as traders wait for the cash index to catch up to recent gains.
Overnight demand news... Exporters reported no tenders or sales.
Today’s reports
- 7:30 a.m. Weekly Export Sales — FAS
- 11:00 a.m. 2022 Census of Agriculture - American Samoa — NASS
- 11:00 a.m. 2022 Census of Agriculture - Guam — NASS
- 1:00 p.m. Vegetable and Pulses Outlook: April 2025 — ERS
- 2:00 p.m. Cold Storage — NASS
- 2:00 p.m. Livestock Slaughter — NASS
- 2:00 p.m. Slaughter Weekly — NASS