EU Renews Trade Proposal to the U.S. Amid Hopes for Transatlantic Deal

Wheat producers are being urged to finalize 2024-crop sales following a sharp rally in wheat futures now at a one-month high as global weather patterns spur short covering. With the marketing year’s end approaching, industry analysts advise liquidating the remaining 15% of 2024 production and preparing for early 2025 and 2026 sales once the market shows signs of plateauing.

Livestock producers are also adjusting strategies. A rebound in corn and soybean meal futures has led to recommendations for extending feed coverage in the cash market through July, to mitigate potential volatility in feed input costs.

EU Revives Trade Engagement with U.S.

In an effort to revitalize stagnant transatlantic negotiations, the European Union has submitted a revised trade proposal to the United States, reflecting concessions on key American priorities. Sources familiar with the talks, as reported by Bloomberg, say the updated plan addresses U.S. concerns on labor rights, environmental protections, and economic security. It also suggests a gradual elimination of tariffs on non-sensitive agricultural and industrial goods signaling a willingness to build common ground with the administration.

Brazil Clears HPAI Fears in Commercial Flock

Brazilian officials have announced that initial testing from a commercial poultry farm in Tocantins state showed no signs of highly pathogenic avian influenza (HPAI). According to the state’s agriculture department, tests revealed only a low-pathogenic influenza strain, with further evaluations ongoing as a precautionary measure. Meanwhile, another suspected case in Santa Catarina remains under investigation by national agricultural authorities.

U.S. Farm Bill Faces Sharp Criticism

Former U.S. Senator Jon Tester voiced strong opposition to the GOP-led farm bill during a recent MSNBC appearance. His critique highlights potential setbacks to food security, increased state burdens for SNAP costs, and expanded subsidies without market competition reforms. Tester warned that these provisions could damage bipartisan trust and weaken demand for U.S. agricultural commodities.

U.S.–China Tariff Truce Triggers Shipping Surge

The temporary 90-day tariff reprieve between the U.S. and China has unleashed a transpacific export rush. Container bookings from China to the U.S. have surged dramatically some lanes reporting a 277% increase between early and mid-May as businesses race to move goods before potential tariffs resume.

• Spot freight rates from China to the U.S. West Coast have risen to $2,400 per FEU, while East Coast rates have hit $3,200.

• Shipping lines, including MSC, have announced new rate hikes and reinstated premium services to accommodate the spike in volume.

• Major Chinese ports, particularly Yantian in Shenzhen, are reporting acute congestion due to export backlogs.

• Capacity constraints and container shortages are expected to persist through June, as vessel redeployment lags behind demand.

• The urgency is further intensified by concerns that trade restrictions could return post-truce, prompting companies to absorb elevated costs now rather than face greater disruption later.

Rare Earths Emerge as Strategic Leverage in Trade Talks

Tensions between the U.S. and China have escalated once more, with rare earth minerals emerging as a focal point in the ongoing trade dispute. These critical elements vital for electric vehicles, defense systems, and advanced electronics are largely controlled by China, giving it substantial leverage.

U.S. automakers are lobbying the government to prioritize rare earth access, warning that any supply disruption could halt production lines and raise vehicle costs. This underscores the increasingly strategic role of logistics and resource management in trade negotiations.

OMB Schedules Key Meetings on 2026 Renewable Fuel Targets

The U.S. Office of Management and Budget has organized a series of stakeholder meetings to review the Environmental Protection Agency’s Renewable Fuel Standard (RFS) targets for 2026. Influential industry groups, such as the Renewable Fuels Association and National Oilseed Processors Association, are set to participate in discussions scheduled throughout late May and early June.

These meetings will also address a separate EPA rule related to cellulosic biofuel requirements, further shaping the renewable fuel policy landscape in the years ahead.

U.S. Importers Turn to Bonded Warehousing to Ease Tariff Pressure

Faced with persistent tariff uncertainty, especially on imports from China, many U.S. firms are converting standard facilities into bonded warehouses. These secured storage sites allow goods to be held for up to five years without immediate duty payments, offering a crucial advantage in volatile trade environments.

Why Bonded Warehousing Is Rising in Popularity:

• Tariff Management: Defers tariff costs until goods are withdrawn for domestic consumption or re-exported.

• Cash Flow Flexibility: Importers delay large upfront payments, freeing capital for operations.

• Supply Chain Strategy: Helps firms navigate unpredictable shifts in trade policy and tariffs.

However, the rush to convert facilities has created its own challenges. The cost of bonded storage now ranges between $75–$150 per pallet monthly significantly higher than standard warehousing and Customs certification delays can exceed six months.

Fed Officials Signal No Rate Cuts Despite No Recession Forecast

At a recent Atlanta Fed conference, Federal Reserve Bank Presidents Mary Daly, Beth Hammack, and Raphael Bostic collectively emphasized caution in monetary policy decisions. While economic indicators don’t point toward a recession, the central bank leaders stressed the need for patience amid lingering market uncertainty.

All three noted a shift toward real-time economic sentiment tracking, such as AI-powered textual analysis, to improve forecasting in today’s complex macroeconomic environment.

This article has been edited and adapted to suit the logistics and global trade readership of Worldcraft Logistics. Original content has been rewritten for clarity, coherence, and relevance to industry professionals.