Thursday July 10th, 2025

• The market is mixed this morning.
• Soybean futures continued their decline on Wednesday. The November 2025 contract lost 10 cents and with futures closing at $10.07 ($12.77/bu cash bid). See the soybean chart below.
  • The selloff was driven by tariff concerns and the lack of progress in trade negotiations with China. 
  • We also saw some additional pressure from fund selling and a favorable weather outlook.
• Trump plans to impose a 50% tariff on Brazilian imports starting August 1st. The tariff is one of the highest rates under Trumps reciprocal tariff policy.
  • The US dollar gained 2% on the Brazilian Real following the announcement yesterday. 
  • This is considered bearish, particularly for soybeans. 
• The Indonesian Flour Producers Association has signed a memorandum with the US Wheat Associates. They committed to buy 1mmt/year of US wheat from 2026 to 2030. This agreement doubles Indonesia’s US wheat purchases when averaged over the last 5 years.
  • News reports have indicated that Indonesia would be increasing their US wheat imports as part of tariff negotiations. 
• The USDA will release the July Crop Report tomorrow.