Daily Ag Direction 6/11/25
Good Morning!
China and the United States have reportedly reached another agreement following a round of trade negotiations. While details are still emerging, President Trump’s social media post suggests that U.S. tariffs on China will be adjusted to 55%, while China’s tariffs will remain at 10%—likely in addition to other existing tariffs. The U.S. tariff breakdown includes a 10% reciprocal tariff, a 20% charge related to fentanyl trafficking, and a 25% tariff reflecting previous trade measures. As part of the agreement, China is expected to guarantee the supply of magnets and rare earth minerals to the U.S., while the U.S. will ease restrictions on technology exports.
The corn market aims to extend yesterday’s rebound after hitting new contract lows in July. Favorable U.S. weather conditions continue to support early crop development, with scattered showers and rising temperatures expected to accelerate growth. Despite this, new crop contracting from producers remains minimal as prices remain range bound.
The bean complex is trading higher this morning, driven by optimism surrounding U.S. trade discussions with China. Looking back at the 2020 agreements with China, we saw late year rallies in corn and beans.
July KC Wheat is +4 @ $5.3125
Sept KC Wheat is +3.25 @ $5.4325
July Corn is +2 @ $4.4075
Dec Corn is +1 @ $4.41
July Soybeans are up a quarter penny @ $10.58
Nov Soybeans are +1.25 @ $10.325
Please reach out to your CEA Risk Management Advisor if you have any questions. Have a great day!
Mike Hellman
580-532-5126
