Silver, beefs up
Two unrelated but exciting commodity moves occurred this week as silver and live cattle futures surged to new heights threatening more fears of inflation and concerns about tariffs. Silver soared to a 13-year high while cattle careened to an all-time record high. Silver’s quality as earth’s best element for conducting electricity is catching attention as investors recognize massive and growing demand for data centers, AI, solar, electric vehicles, nuclear and military uses. Some analysts now predict the price of the blue metal might exceed the price of gold. Cattle’s explosion could continue as the number of cattle in the U.S. is the lowest since the 1950s, and yet demand has not declined. Many grillers could finally be looking at hot dogs and chicken legs on the Fourth of July.
No DOGE-ing need for critical USDA jobs
Some 15,000 USDA employees have left their jobs since a $7 billion reduction in the department budget by the current administration. The cut was billed as a need to “safeguard our country from fiscal ruin.”
A long time D.C. USDA stalwart, Kevin Shea, commented that there was no way the cuts wouldn’t be felt by farmers and ranchers. While many employees left voluntarily, workers cited pressure to leave their positions as the primary reason for departing.
In May, U.S. Ag Secretary Brooke Rollins testified to Congress that the USDA is looking to fill critical positions with new hiring. On May 11, 6,000 USDA probationary jobs were reinstated based upon a U.S. Merit Systems Protection Board decision. Positions in the Food Safety and Inspection Service and in the Natural Resources Conservation Service have been mentioned as important to farmers and ranchers, especially the work of inspectors who prevent invasive pests and disease outbreaks.
Secretary Rollins remains in the difficult position of supporting the farm community while following the administration’s spending reductions.
Hopeful Trump waits to Xi compromise
President Trump’s Thursday phone conversation with Chinese President Xi Jinping offers hope that the two economic powerhouses can resolve recent tariff issues. While both countries agreed in May to a 90-day reduction in tariffs, many hope that talks can lead to more permanent economic stability.
President Trump characterized the 90-minute call as pointing to a “total reset” for tariffs, saying that the conversation was “very positive.” Trump plans to travel to China to seek further progress and has invited Xi to visit Washington.
Both sides admit that a number of difficult issues remain on the table.
Discouraging words where the antelope roam
Antelopes are causing problems for Russian grain farmers in the Saratov agricultural region. Estimates say that 4 to 4.5 million Saiga antelopes roam Central Asian countries, up from just 25,000 in the 1990s. Russian farm groups say that the roaming population has reached nearly 1 million in their country, threatening grain groups and polluting water supplies as the animals drown in local rivers. The herds are crossing from Kazakhstan into southern Russia. Farmers’ crop losses are not insured because the animals do not qualify as crop pests.
Meanwhile in the U.S. “… seldom is heard a discouraging word, and the skies are not cloudy all day.”
CME midday prices: Price per bushel: July Soybeans, $10.57; July Corn, $4.38; July Wheat, $5.41. June Livestock per 100 pounds: Cattle, $226.00; Hogs, $102.25. Metals per troy ounce: August Gold, $3,336; July Silver, $36.10. July Copper per pound: $4.84. July Crude oil per barrel: $64.50. The June S&P futures contract is trading at 6015.00.
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