HRW: + 5 cents each 1/2% above 11.5% to 13.0%; - 10 cents each 1/2% below 11.5%

DNS: + 3 cents each 1/4% above 14.0% to 15.5%; - 7 cents each 1/4% below 14.0%

SWW: + 0 cents each 1/10% below 10.5%; - 0 cents each 1/10% from 10.5% to 12.0%. Max = -$0.00

** CLUB WHEAT MAX 10.5% PROTEIN ONLY **

Premiums and Discounts are Subject to Change...Please Call to Confirm

Friday Morning July 11th, 2025

Outside Markets:  

• USD is higher

• Crude is higher

• Gold is higher

• Bitcoin is at all-time highs, again

Market News:  

• Wheat is lower

• Corn is lower

• Soybeans are lower

Daily Trivia: What is the smallest unit of Bitcoin called? And how many are there in one Bitcoin?

You'll notice an addition to the "outside market" bullet points above. Regardless of your stance on crypto, its consistent impacts on the economic landscape are probably worth highlighting and keeping close tabs on, so today it earned a spot. Along with the bitcoin highs, the USD is also on the up this morning, now trading around 97.50. If the index closes at or above this level today, it could signal a potential rally continuation next week based on technical indicators. Good thing I didn't write about a potential bearish pattern signaling a devaluation of the USD in our recent newsletter. Oops, guess we'll see. Gold is also up for the third straight session but remains confined within a narrow July range. Silver, on the other hand, is surging to new contract highs. 

The latest tariff news is that President Trump has imposed a 35% tariff on Canada. He warned that the tariff rate could rise further if Canada retaliates, similar to his approach with China in April. This move has the European Union on alert, fearing they may be next. Despite weeks of intense trade talks with the White House, the EU has yet to reach a deal. Meanwhile, U.S. Secretary of State Marco Rubio met with Chinese Foreign Minister Wang Yi in Malaysia overnight during his first visit to Asia for the East Asia Summit and ASEAN Regional Forum. Unfortunately, there’s no indication yet whether the meeting yielded any concrete results. 

Do you remember that 2-3 month stretch where all I talked about was the section 301 Chinese vessel fee proposals? That was fun, wasn't it? Let's circle back right quick... Although it's quieted down in our sector due to the ag commodity exemption and size capacity limitations, the headlines still linger. The latest data shows that although China had been dominating the global ship building market in the past, the tide has shifted immensely. Since the U.S. announced the new port fees earlier this year, orders for Chinese-built ships have dropped 68% year-over-year, according to Clarkson's, a global maritime intelligence firm. In contrast, orders for South Korean built ships are only down 7% despite the tariff uncertainty (South Korea being the world’s second-largest shipbuilder). This adds exponentially amplified pressure on China’s industrial sector and economy which is already feeling the effects of tariffs. In response, the Chinese government is trying to expand employment programs, offering incentives for companies that hire unemployed youth aged 16–24, and supporting rural areas by subsidizing the hiring of migrant workers returning from cities where they lost employment. China’s top economic planner also recently indicated the country may consider launching new large-scale infrastructure projects to help boost employment... Overall, I keep it unbiased on here, because this isn't a political blog. So I'm not implying anything when I say that from a tactical standpoint... Not a bad play call by the administration? Especially if we're assuming the goal was to influence their industrial and economic sector in the exact way that's being reported? One could argue that although they're not necessarily in "check mate", a simple "check" might be in order. Any Grandmasters out there? Contrarily though, the impacts that those fees may have on the US economy and how it translates to producers and consumers in our own country is still yet to be seen and could be severe. Especially considering the U.S. port fees haven't even been implemented yet. They reportedly will begin in October at $50 per net ton, rising to $80 per ton by April of next year, and reaching $110 in 2027 and $140 by April of 2028. Basically, all I'm saying is that the story is far from over and neither those in favor of the approach, nor those appose, are taking a victory lap anytime soon. And let me remind you that I'm impartial here. So no matter who earns that lap, I'll be the unbiased civilian in the bleachers watching and writing commentary about it. Thats my soap box with a shoe-horned chess joke. Did I mention I'm impartial? Let's move on. 

The USDA is set to release its monthly WASDE crop report today at 9am. The July edition typically doesn't bring many surprises, but there are still some key points to watch. The main focus is that the report will reflect updated stocks and acreage data from the June 30 release. There could be some surprises, but the general consensus is that these adjustments are expected to be minor and already factored into market pricing. And to update you on the stories from yesterday, analysts this morning are reporting that the ongoing closure of the U.S.-Mexico border to northbound feeder cattle could lead to higher corn exports to Mexico, though this would be offset by a reduction in domestic feed use, since the same cattle are being fed south of the border instead. 

Couple international wheat related stories: French wheat rated good to excellent improved to 69%, up 2% from last week, and harvest progress reached 36%, an 11% increase from the previous week. The EU Farm Co-op estimates EU soft wheat production at 123.4 million metric tons, up 9.6% from last year. Meanwhile, The Grain Association of Western Australia reports that wheat production in Western Australia is expected to drop 24% this year due to poor rainfall. They estimate total wheat output at 9.4 million metric tons, down from 12.45 MMT in 2024/25. Barley production is projected at 5.71 MMT, slightly below last year’s 5.89 MMT, while canola production remains unchanged at 2.87 MMT. In theory, this is good for us. But considering how big Australia's crop was last year it probably won't shake things up much. A dip below an extended multi-year average of that size would hold a lot more weight. Well, a lot more weight figuratively, but less metric tons literally. Is that how the transitive property works? Have a great weekend everybody. Until Monday, God bless. 

Trivia Answer: Satoshis. 100,000,000.

Effective July 1st, 2025 

We know every dollar counts, especially in agriculture, and that's why I'm delighted to announce that the Board of Directors has approved a 10% reduction in wheat handling rates. This will bring the rate down from 15 cents to 13.5 cents per bushel, effective July 1st, 2025.

 This decision was made with you, our valued members, at the forefront. We firmly believe that by reducing these rates, we can help put more money back into your pockets and support the vital work you do every day on your farms.  This is about strengthening our co-op together, and ensuring we continue to provide the best possible value for your hard-earned dollar.

 To help us continue making smart decisions that enrich our members, we'd greatly appreciate it if you could please take a few moments to fill out our Acres for Storage Survey at this link. Your input is so helpful as we plan for the future.

 Thank you for your continued loyalty and for being such an integral part of our co-op community. Your success is our success, and we're committed to doing everything we can to support you.

Sincerely,

Garrett Egland

General Manager