🌽 Today’s Market News for Farmers
🇺🇸🇪🇺 U.S. and Europe Strike New Trade Deal
Over the weekend in Scotland, U.S. President Donald Trump and European Commission President Ursula von der Leyen reached a new trade agreement. The U.S. will place a 15% tariff on most goods coming in from Europe (that’s half of what was originally threatened). In return, the EU has pledged to invest $600 billion in American energy and military products—a major commitment that could boost U.S. energy exports.
The deal is being compared to a similar agreement made last week with Japan. Germany, a major exporter, was especially relieved. Their leaders say this deal helps avoid a damaging trade war—particularly good news for their large auto industry. However, questions remain about whether the EU can follow through on buying that much U.S. energy. If they don’t, President Trump retains the option to raise tariffs again.
🛢 OPEC+ Meeting Today Could Impact Oil Supply
OPEC+, the group of oil-producing countries including Russia and Saudi Arabia, is meeting today to check in on global oil supplies. These meetings happen every two months. While no big moves are expected today, many expect the group will increase oil production again in September by 548,000 barrels a day, following similar boosts in August.
Even with these increases, oil prices have held steady due to strong summer demand and the fact that some countries haven’t met their production targets. OPEC+ controls about half of the world’s oil supply, so their decisions have a big effect on fuel prices here at home.
🇨🇳 U.S.-China Trade Talks Continue
China has until August 12 to finalize a new trade agreement with the U.S., following a preliminary deal in June. Another round of high-level talks is happening today in Stockholm. The two countries are trying to sort out major issues, including tariffs and technology exports.
China controls many of the world’s rare earth minerals (used in everything from magnets to electronics), and the U.S. is concerned about becoming too dependent. Analysts expect today’s meeting to result in a 90-day extension of the current trade pause, with a potential Trump–Xi summit coming later this fall.
📈 Market Snapshot
Oil prices kicked off the week strong, thanks in part to the U.S.–EU trade deal removing some uncertainty from global markets. West Texas Intermediate (WTI) crude oil is holding firm around $65 per barrel, but isn’t getting much traction above $69 due to upcoming supply increases from OPEC+.
🔍 Energy Highlights: China Ramps Up Refining
China is processing more oil than it has in months. After routine maintenance in the spring, Chinese refineries processed 15.15 million barrels per day in June, their highest since September 2023. This is helping replenish low supplies of gasoline and diesel, which have hit six-year lows.
China’s demand for jet fuel and materials used in plastics and chemicals is also growing. These trends are expected to continue through the summer, and as a result, China—the world’s largest oil buyer—is likely to increase imports. That could help support global oil prices in the near term.
📞 Want to know what this could mean for your farm fuel budget? Give your account manager a call—we’re here to help you stay ahead.
