Farms.com Home   Ag Industry News

Markets React to Stalled Trade Talks with China and Lower Interest Rates

Markets React to Stalled Trade Talks with China and Lower Interest Rates
Sep 22, 2025
By Farms.com

U.S. China trade deal uncertainty impacts the Commodity Markets

On the weekly Ag Commodity+ Podcast, Farms.com Risk Management Chief Commodity Strategist Moe Agostino and Commodity Strategist Abhinesh Gopal reviewed key market events for the week of September 15 to 19. The focus was on the stalled US - China trade talks, falling interest rates, and updated crop estimates and the impact these events were having on the commodity markets.

Soybeans weakened after discussions between President Trump and Chinese Premier Xi produced no mention of agricultural products. While talks continue, no agreement is expected before early 2026, leaving US soybean growers without fresh Chinese demand this winter.

Economic policy changes also drove market activity. The US Federal Reserve reduced rates for the first time in nine months, with further cuts likely. These moves fueled stock market gains, with major US indexes sharply higher to new record levels. Lower rates may eventually increase commodity investment, though effects will take time.

The Bank of Canada cut rates for the eighth time to 2.5 percent, with more cuts possible by year end.

The team noted a new US framework trade agreement with Taiwan worth $10 billion over four years. While positive, it is not seen as a major shift compared to existing trade volumes.

Statistics Canada raised production estimates for canola and wheat, with canola possibly reaching 21 million metric tons by December.

Meanwhile, drought continues to stress US Midwest and Ontario crops, while South America expects favorable rains for soybean planting.

In livestock, the USDA’s latest Cattle on Feed report showed tight supplies.

Butter futures fell to their lowest level in nearly three years due to strong seasonal production.

Agostino and Gopal emphasized that farmers must stay alert to these changing trade, weather, and market conditions to protect profits and plan harvest strategies.

For daily information and updates on agriculture commodity marketing and price risk management for North American farmers, producers, and agribusiness visit things; Farms.com Risk Management Website to subscribe to the program.

Podcast lover who already has a YouTube.com account? To receive notifications when the Ag Commodity Corner+ Podcast is posted each week, be sure to Subscribe to the Farms.com channel, and ensure you have and ensure you have "All" selected. This way you will be notified whenever we post a new video. But remember, you have to be logged in to receive the notifications on YouTube.




Trending Video

A chain harrow is a game changer

Video: A chain harrow is a game changer

Utilizing a rotational grazing method on our farmstead with our sheep helps to let the pasture/paddocks rest. We also just invested in a chain harrow to allow us to drag the paddocks our sheep just left to break up and spread their manure around, dethatch thicker grass areas, and to rough up bare dirt areas to all for a better seed to soil contact if we overseed that paddock. This was our first time really using the chain harrow besides initially testing it out. We are very impressed with the work it did and how and area that was majority dirt, could be roughed up before reseeding.

Did you know we also operate a small business on the homestead. We make homemade, handcrafted soaps, shampoo bars, hair and beard products in addition to offering our pasture raised pork, lamb, and 100% raw honey. You can find out more about our products and ingredients by visiting our website at www.mimiandpoppysplace.com. There you can shop our products and sign up for our monthly newsletter that highlights a soap or ingredient, gives monthly updates about the homestead, and also lists the markets, festivals, and events we’ll be attending that month.