Heavy rainfall reduced drought in the U.S. Midwest
On this week’s Ag Commodity Corner+ Podcast with Farms.com Risk Management Commodity Strategist Abhinesh Gopal, for the week of July 28 to August 1, 2025, the episode centered on the August 1 U.S. tariff deadline and its wide-ranging market effects.
Grain markets saw losses this week, showing “a lot of red on the screen,” as weather fears faded. Canola remains supported by weather challenges, but traded lower during the week.
Meanwhile, the livestock sector continued strong, with cattle leading for another week.
The stock markets, which had hit record highs, saw corrections by week’s end. Tariff updates were a key market driver. The U.S. confirmed trade agreements with key partners like the EU and South Korea, while others like Canada, Mexico, India, and Australia remained pending.
Notably, tariffs on Canadian goods outside the USMCA increased from 25% to 35%, while Mexico received another 90-day tariff pause.
President Trump also announced 10–50% tariffs on various partners/sectors, with a special 40% transshipment tariff targeting goods rerouted through third countries. Talks with China in Stockholm hinted at an extension to their tariff pause, set to expire August 12.
Weather-wise, heavy rainfall reduced drought in the U.S. Midwest to just 8.5%, down from about 30% in June, removing much of the grain market’s weather risk. A derecho event earlier in the week turned out to be minor.
In financial updates, The U.S. Federal Reserve left rates unchanged, but poor jobs data raised expectations for a September rate cut. Bank of Canada held interest rates at 2.75%, with underlying inflation believed to be 2.5%.
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.
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