Written Commentary
Global Ag News For May 21.2025
May 21, 2025
STOCK INDEX FUTURES
Stock index futures are higher on Monday as markets continued to assess risks from the uncertain trade policy passed by the Trump Presidential administration.
Futures advanced as a surprise U.S. tariff exemption from President Donald Trump gave tech companies a boost to start the week. President Donald Trump exempted smartphones and computers as well as other devices and components such as semiconductors from his new “reciprocal” tariffs, according to new U.S. Customs and Border Protection guidance issued late Friday.
March S&P 500 and March NASDAQ futures gapped higher today. These gaps appear to be breakaway gaps.
There are no major economic reports scheduled for today.
An accommodative Federal Reserve monetary policy remains an underlying supportive influence.
CURRENCY FUTURES
The March U.S. dollar index is lower and is hovering at its lowest level in three years as concerns over the U.S. economic outlook and policy direction continued to weigh on sentiment.
The greenback weakened mostly against the euro currency and the Japanese yen.
On Monday the German statistics agency reported German exports to the U.S. reached a new high in 2024, marking the largest share since 2002.
The U.S. accounted for approximately 10.4% of Germany’s exports. This surge positioned the U.S. as Germany’s top export destination.
INTEREST RATE MARKET FUTURES
Futures are slightly lower at the front of the yield curve and are higher at mid-curve and at the long end of the yield curve.
Susan Collins of the Federal Reserve over the weekend said the Federal Reserve “absolutely” is ready to help stabilize markets if needed.
Minneapolis Federal Reserve President Neel Kashkari warned that even modest U.S. tariffs could significantly disrupt trade.
Federal Reserve speakers today are Thomas Barkin at 11:00 central time and Raphael Bostic at 6:40 PM.
The Federal Open Market Committee is predicted to lower its key interest rate by 25 basis points three times in 2025 with the first reduction likely at the June meeting.
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