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🌱🌽 Argentina’s soybean and corn crop forecasts were cut due to hot and dry weather. The Buenos Aires Grains Exchange now predicts the soybean crop will reach 49.6 million metric tons (down 1mmt) and the corn crop 49 million metric tons (also down 1mmt). While some rain is expected in soybean areas soon 🌧️, the intense heat 🌞 will likely limit its benefits.

🇦🇷 To help farmers struggling with drought and low crop prices, Argentina is temporarily reducing export taxes on soybeans, soybean products, corn, and wheat 🌾. The tax cuts, fulfilling a campaign promise by President Javier Milei, will start Monday and run through June. Farmers have been facing a rainfall deficit since December, making these changes critical.

🛢️ Brooke Rollins, President Trump’s nominee for Agriculture Secretary, promised to support all fuel types, including biofuels. During her hearing, she distanced herself from her previous employer, who opposed biofuels, and committed to following Trump’s energy dominance plan. Rollins also plans to work on 45Z tax credit guidance with Treasury Secretary nominee Scott Bessent. Meanwhile, Trump announced plans to declare a national energy emergency, which may allow year-round sales of E15 fuel.

🚜 Rollins also said she might consider direct payments to farmers hurt by tariffs, similar to Trump’s earlier approach. During his first term, the administration spent billions to offset losses from retaliatory tariffs on US soybeans. Some senators criticized this method, saying farmers prefer to sell their products rather than rely on government aid. Rollins also aims to reduce the $42 billion agricultural trade deficit and expand trade markets, though she had no response when asked about the impact of mass deportations on farmworkers.

🍶 US ethanol production increased last week, hitting 1.1 million barrels per day, up 4.3% from the same time last year. Ethanol stocks rose to 25.9 million barrels, a 3.5% increase from the previous week. Gasoline demand, however, dropped by 2.9% compared to the week before.

🌾 The USDA’s latest drought report shows little change in conditions. The Corn Belt saw limited rain, with slight improvements in northern Indiana and Illinois. The High Plains remained dry, and cold air from Canada brought temperatures 12–15°F below normal.

Drought Impact:

• 🌽 Corn: 42%
• 🌱 Soybeans: 35%
• 🌾 Winter Wheat: 23%
• 🌾 Spring Wheat: 45%
• 🐄 Cattle: 33%