05/09/2025 Deal or No Deal, White Smoke

On the Grains
Is it possible that we were not forgotten? Yesterday’s trade deal, including zero tariffs on ethanol to the UK, it was a massive win for agriculture. I like where the first deal went, let’s see where the rest of them go. The U.K. uses 1.4 billion liters of ethanol annually. With removing the 19% tariff, U.S. ethanol is expected to become even more competitive against Brazilian and EU producers. The beef deal included is likely a non-factor as they will not adjust policy limiting the use of growth hormones, which the bulk of cattle have here. It’s possible that some small regional plants would open up a program and try to hit that niche market that could potentially provide some margin relief to them, time will tell.