June 13, 2025 • 9 mins
Markets experienced dramatic overnight shifts as Middle East conflict sent crude oil soaring 13% while the EPA announced record biofuel mandates, creating a perfect storm of volatility.
• Crude oil surged 13% overnight - equivalent to a $1.40-$1.50 move in soybeans
• EPA announced highest-ever renewable fuel obligations through 2027
• Soybean oil closed limit up (300 ticks) in response to favorable biofuel mandates
• Iran-Israel conflict raises concerns about the Strait of Hormuz, where 20% of daily global oil flows
• Grain markets closed on their highs despite favorable weather forecasts
• Cattle markets sold off sharply, closing on their lows
• US-China trade negotiations showing positive progress following recent talks
• Northern Plains experiencing cool conditions with heavy rainfall in parts of South Dakota
• Markets face significant weekend risk with ongoing geopolitical tensions
Sign up for the Red River Farm Network's e-newsletter "Farm Net News" at rrfn.com for ongoing agricultural news and market insights.
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Thank you, Tommy G
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:19):
Happy Friday everyone .
Tom Grossoffi, agbow Media,sitting down here in Nashville
at the Nesvik trading office andboy do we have a lot to talk to
you about.
I didn't leave here until 1.30in the morning and I came back
at 6.
The world changed.
I sent a text out to clientsyesterday saying there's nothing
going on.
I wish I had some news.
There's just nothing going on.
Well, it all changed and I gotjust a guy to talk about it.
(00:42):
He brought in his NDSUsweatshirt.
That means he means business,because you don't mess with the
horns.
Speaking of horns, bring themin Don Wick, red River Farm
Network.
Mr Wick, you have the NDSUsweatshirt.
That means you don't mess withthe horns.
Speaking of horns, crude oil up13% last night.
Stage is yours.
What do you know?
Speaker 2 (01:00):
Obviously the war had some, or the bombing taking
place in the Middle East had alot of impact on that.
We came in this morning and sawcrude taking big advances, gold
going to new highs, with thatreally being that safe haven.
It is a crazy time.
I went home yesterday thinkingthe senator in handcuffs was
(01:21):
going to be the big news storyof the day and obviously you
started sending me texts lastnight about what was happening
overseas.
Speaker 1 (01:29):
Yeah, that's one for the books.
I didn't even know it hadhappened.
You know me, I always have myphone or Squawk Box or something
.
I didn't know I was actuallyworking here.
We have a new studio here inNashville Ag Bowl Media, ag Bowl
Trading Building.
I had no clue.
A client texted me and said withcrude oil up so much, don't you
think corn should go up?
And I'm thinking how much iscrude oil up?
(01:49):
Show us what we have.
And when I logged in, crude oilwas up five bucks.
So absolute dynamic.
Now that was nothing, becausean hour and a half later I
started texting you and clientsand I send out my group texts
and stuff.
Crude oil up $9, 13 percent.
That'd be equivalent to like adollar, 40 dollar, 50 move in
soybeans.
This is a significant move andlet me tell you, the amount of
(02:11):
money involved in physicalenergies and energy futures
dwarfs what we're doing here.
In corn and beans, I mean theenergy.
The world energy markets moved13 last night.
Now, now, ed, I heard rumor,has it?
We had some news out of the EPAtoday.
What do you know about that, mr?
Speaker 2 (02:28):
Whitton Mid-morning the announcement from the
Environmental Protection Agencyregarding the renewable fuel
obligations, renewable fuelvolumes, that came out and I
think the trade you tell me, butI thought the trade was
thinking it was going to belower than the Aggies and the
biofuel industry had been hopingfor and it actually came out
better than anticipated.
(02:48):
We're looking at a 15 billiongallon total for 26 and 27 on
the ethanol blends.
The biodiesel quota it's like3.3 billion this year goes to
5.6 billion gallons for 26 andalmost 5.9 for 27.
Again, highest ever as far asthe volume requirement that
(03:11):
we've ever seen in thatannouncement this morning
Certainly had a huge impact onthe soy oil in our trade here
today as well.
Speaker 1 (03:18):
Yeah, soy oil just closed.
Limit up 506.1 up 300, 300ticks on soybean oil.
Limit up 506.1 up 300, 300ticks on soybean oil.
Limit up yes, uh, every fewweeks you'd see soybean oil up,
150 ticks down, 150 ticks updown.
I looked over.
Soybean oil was off to theraces.
And then soybeans had amagnificent day.
(03:39):
Soybeans up 25, 26 cents, goinghome.
Uh, over the weekend grainsclosed on the high.
Soybeans on the high corn onthe high, all three classes
wheat on the soybeans up 25, 26cents going home.
Over the weekend, grains closedon the high.
Soybeans on the high corn onthe high, all three classes of
wheat on the high.
Energies are moving Right as westart to film here.
Today we had some breaking newshere.
Bombs are flying, iran nowsending in bombs and missiles to
(04:00):
Israel.
Was it you?
I don't know who said it.
Someone said that's what weneed.
Another war, right, that's justwhat.
Who had another war on theirbingo card?
Not me, mr Wick.
Speaker 2 (04:10):
Think about the shipping issues that Strait of
Hormuz.
20% of the oil daily goesthrough that particular shipping
channel, so that has to have animpact on the petroleum.
We knew what happened in theBlack Sea region when we started
with the Russian-Ukraineconflict, so a lot of this is
just trying to get from point Ato point B.
Speaker 1 (04:33):
Yeah, let's talk about fertilizer.
Iran, third, fourth largestproducer of a certain type of
fertilizer.
Keep an eye on that.
You know, josh, is it?
Josh Linville from FC Stonedoes a wonderful job keeping
track of fertilizers.
Go back and look at his tweetand he had some great coverage
on that.
This is a big deal.
This isn't like crude was up $2.
(04:54):
They're fighting.
Then it went back down.
We have the stock market down abunch, which is somewhat normal
for what's going on lately.
But then it's a friday fridaythe 13th, I might add and these
guys are going to fight friday,saturday, sunday these markets,
wherever they close, they're notgoing to look the same.
Speaking of not closing, well,did you see where the cattle
market closed, mr wick?
Speaker 2 (05:15):
well you know that market.
We've been looking at what'sbeen going on with demand there.
It's been amazing how it's heldtogether.
When we're paying that muchmore at the gas pump, that's
going to probably impact whatwe're going to see at the
supermarket as well.
Speaker 1 (05:28):
Yeah, and if you're out there in financial land and
you were hoping the interestrates were going to get lowered,
I don't know about that.
When crude oil, the energies ofthe world go up 12, 13, that is
extremely inflationary.
And as far as cattle, thosetires were full.
They let a little air out ofthem.
Live cattle, feeder cattleclosed on the dead low and then
we're open for five more minutes.
(05:48):
We close at one o'clock.
We officially close at 105,offered through the lows into
the bell.
It's been a long time sinceI've seen a cattle market
organized and sell off like that.
We sell off and we have thesevicious rallies.
This one's real.
We closed on the low, put themdown for the week.
We'll see where we open monday,but there is a lot of risk over
the weekend.
Anything else, you can tell ushow the dc or overall uh little
(06:12):
tidbits you have, mr wick take alook at.
Speaker 2 (06:14):
Early in the week we had uh, the US and China trade
negotiators were meeting inLondon.
It was just a week ago,thursday, that President Trump
and President Xi had a phonecall and that put together a
very quick meeting as far astwo-day negotiations and it
looks like we're back again towhere they had negotiated things
(06:35):
in mid-May.
So a positive trend.
As far as the tariff situationbetween the US and China, a lot
of different things changing asfar as allowing the Chinese
students and all these kind ofthings.
There's a lot of discussion inthose negotiations.
Rare metals obviously the bigstory out of that one, the US
(06:57):
certainly needing those comingout of China.
Speaker 1 (07:00):
Yeah, so let's wrap it up.
This will not be the longestshow you and I have ever done.
I forgot about the China-USmeeting because that was so long
ago.
We got China-US getting better.
Look for other groups to comeand negotiate.
Probably one of the struggleswe have is with the European
Union.
When you say European Union,that's not just one country,
(07:23):
that's a lot of countries.
All have to get organized tosay, yeah, we're gonna let uh
them have a tariff on this orthat, so uh, look for it there.
The grain markets if we wouldhave recorded this show
yesterday, my voice would havebeen a lot lower, I would have
been depressed and I don't knowwhat.
To tell you, folks, we have amarket.
Beans were up 25.
Soybean oil was limit up.
Corn went bid.
This was into a reallyfavorable weather report coming
(07:47):
in the weekend.
How's the weather up in theNorthern Plains, mr Wick?
It's feeling a little cool outthere today.
Speaker 2 (07:51):
It's surprising to me that the GDU units are pretty
much on track with where theyshould be at this point.
But I got to remember that inMay we were up in those 90s and
that hot, hot weather.
So we've averaged out, we'reright on trend as far as GDU
units.
But it's pretty cool out thereand rain.
You get south of the valleylike Sisseton.
(08:12):
South Dakota had seven inches,aberdeen had close to eight
inches of rain, uh early thismorning.
So a lot of folks underwaterright now.
Speaker 1 (08:20):
I did not know that sometime between when I went to
bed at two in the morning, wokeup at six, I didn't catch that
weather report, but you did.
Speaking of catching everything, how do people get a hold of
you?
You put out one of the best.
Uh, what do you?
How would you call your Mondayletter?
Speaker 2 (08:34):
uh, it's an e-newsletter called farm net
news.
It's a good snapshot of what'sgoing on in the world of
agriculture at FarmNews.
It's our recap of what's beenhappening.
You go to our website, rrfncom,and sign up.
We'd love to have you, mr.
Speaker 1 (08:48):
Don Wick, owner and big boss of the Red River Farm
Network.
I can actually call him afriend.
I don't know if he'll do thesame, but we'll see network what
I can actually call him afriend.
I don't know if he'll do thesame, but we'll see.
Hey, catch shows like this.
You can watch us on acres tv.
If you're listening on appleand spotify and all those things
, great.
If you're our friends over atacres tv, welcome aboard.
And, as always, I'm tom grisafi, agbo media, agbo trading.
(09:09):
I'm an ap associate person, anesvik trading.
This is the week in review for6, 13, 20, 25.
Jo, roll the tape.
See you, don.
Happy Friday everyone .
Tom Grossoffi, agbow Media,sitting down here in Nashville
at the Nesvik trading office andboy do we have a lot to talk to
you about.
I didn't leave here until 1.30in the morning and I came back
at 6.
The world changed.
I sent a text out to clientsyesterday saying there's nothing
going on.
I wish I had some news.
There's just nothing going on.
Well, it all changed and I gotjust a guy to talk about it.
(00:42):
He brought in his NDSUsweatshirt.
That means he means business,because you don't mess with the
horns.
Speaking of horns, bring themin Don Wick, red River Farm
Network.
Mr Wick, you have the NDSUsweatshirt.
That means you don't mess withthe horns.
Speaking of horns, crude oil up13% last night.
Stage is yours.
What do you know?
Speaker 2 (01:00):
Obviously the war had some, or the bombing taking
place in the Middle East had alot of impact on that.
We came in this morning and sawcrude taking big advances, gold
going to new highs, with thatreally being that safe haven.
It is a crazy time.
I went home yesterday thinkingthe senator in handcuffs was
(01:21):
going to be the big news storyof the day and obviously you
started sending me texts lastnight about what was happening
overseas.
Speaker 1 (01:29):
Yeah, that's one for the books.
I didn't even know it hadhappened.
You know me, I always have myphone or Squawk Box or something
.
I didn't know I was actuallyworking here.
We have a new studio here inNashville Ag Bowl Media, ag Bowl
Trading Building.
I had no clue.
A client texted me and said withcrude oil up so much, don't you
think corn should go up?
And I'm thinking how much iscrude oil up?
(01:49):
Show us what we have.
And when I logged in, crude oilwas up five bucks.
So absolute dynamic.
Now that was nothing, becausean hour and a half later I
started texting you and clientsand I send out my group texts
and stuff.
Crude oil up $9, 13 percent.
That'd be equivalent to like adollar, 40 dollar, 50 move in
soybeans.
This is a significant move andlet me tell you, the amount of
(02:11):
money involved in physicalenergies and energy futures
dwarfs what we're doing here.
In corn and beans, I mean theenergy.
The world energy markets moved13 last night.
Now, now, ed, I heard rumor,has it?
We had some news out of the EPAtoday.
What do you know about that, mr?
Speaker 2 (02:28):
Whitton Mid-morning the announcement from the
Environmental Protection Agencyregarding the renewable fuel
obligations, renewable fuelvolumes, that came out and I
think the trade you tell me, butI thought the trade was
thinking it was going to belower than the Aggies and the
biofuel industry had been hopingfor and it actually came out
better than anticipated.
(02:48):
We're looking at a 15 billiongallon total for 26 and 27 on
the ethanol blends.
The biodiesel quota it's like3.3 billion this year goes to
5.6 billion gallons for 26 andalmost 5.9 for 27.
Again, highest ever as far asthe volume requirement that
(03:11):
we've ever seen in thatannouncement this morning
Certainly had a huge impact onthe soy oil in our trade here
today as well.
Speaker 1 (03:18):
Yeah, soy oil just closed.
Limit up 506.1 up 300, 300ticks on soybean oil.
Limit up 506.1 up 300, 300ticks on soybean oil.
Limit up yes, uh, every fewweeks you'd see soybean oil up,
150 ticks down, 150 ticks updown.
I looked over.
Soybean oil was off to theraces.
And then soybeans had amagnificent day.
(03:39):
Soybeans up 25, 26 cents, goinghome.
Uh, over the weekend grainsclosed on the high.
Soybeans on the high corn onthe high, all three classes
wheat on the soybeans up 25, 26cents going home.
Over the weekend, grains closedon the high.
Soybeans on the high corn onthe high, all three classes of
wheat on the high.
Energies are moving Right as westart to film here.
Today we had some breaking newshere.
Bombs are flying, iran nowsending in bombs and missiles to
(04:00):
Israel.
Was it you?
I don't know who said it.
Someone said that's what weneed.
Another war, right, that's justwhat.
Who had another war on theirbingo card?
Not me, mr Wick.
Speaker 2 (04:10):
Think about the shipping issues that Strait of
Hormuz.
20% of the oil daily goesthrough that particular shipping
channel, so that has to have animpact on the petroleum.
We knew what happened in theBlack Sea region when we started
with the Russian-Ukraineconflict, so a lot of this is
just trying to get from point Ato point B.
Speaker 1 (04:33):
Yeah, let's talk about fertilizer.
Iran, third, fourth largestproducer of a certain type of
fertilizer.
Keep an eye on that.
You know, josh, is it?
Josh Linville from FC Stonedoes a wonderful job keeping
track of fertilizers.
Go back and look at his tweetand he had some great coverage
on that.
This is a big deal.
This isn't like crude was up $2.
(04:54):
They're fighting.
Then it went back down.
We have the stock market down abunch, which is somewhat normal
for what's going on lately.
But then it's a friday fridaythe 13th, I might add and these
guys are going to fight friday,saturday, sunday these markets,
wherever they close, they're notgoing to look the same.
Speaking of not closing, well,did you see where the cattle
market closed, mr wick?
Speaker 2 (05:15):
well you know that market.
We've been looking at what'sbeen going on with demand there.
It's been amazing how it's heldtogether.
When we're paying that muchmore at the gas pump, that's
going to probably impact whatwe're going to see at the
supermarket as well.
Speaker 1 (05:28):
Yeah, and if you're out there in financial land and
you were hoping the interestrates were going to get lowered,
I don't know about that.
When crude oil, the energies ofthe world go up 12, 13, that is
extremely inflationary.
And as far as cattle, thosetires were full.
They let a little air out ofthem.
Live cattle, feeder cattleclosed on the dead low and then
we're open for five more minutes.
(05:48):
We close at one o'clock.
We officially close at 105,offered through the lows into
the bell.
It's been a long time sinceI've seen a cattle market
organized and sell off like that.
We sell off and we have thesevicious rallies.
This one's real.
We closed on the low, put themdown for the week.
We'll see where we open monday,but there is a lot of risk over
the weekend.
Anything else, you can tell ushow the dc or overall uh little
(06:12):
tidbits you have, mr wick take alook at.
Speaker 2 (06:14):
Early in the week we had uh, the US and China trade
negotiators were meeting inLondon.
It was just a week ago,thursday, that President Trump
and President Xi had a phonecall and that put together a
very quick meeting as far astwo-day negotiations and it
looks like we're back again towhere they had negotiated things
(06:35):
in mid-May.
So a positive trend.
As far as the tariff situationbetween the US and China, a lot
of different things changing asfar as allowing the Chinese
students and all these kind ofthings.
There's a lot of discussion inthose negotiations.
Rare metals obviously the bigstory out of that one, the US
(06:57):
certainly needing those comingout of China.
Speaker 1 (07:00):
Yeah, so let's wrap it up.
This will not be the longestshow you and I have ever done.
I forgot about the China-USmeeting because that was so long
ago.
We got China-US getting better.
Look for other groups to comeand negotiate.
Probably one of the struggleswe have is with the European
Union.
When you say European Union,that's not just one country,
(07:23):
that's a lot of countries.
All have to get organized tosay, yeah, we're gonna let uh
them have a tariff on this orthat, so uh, look for it there.
The grain markets if we wouldhave recorded this show
yesterday, my voice would havebeen a lot lower, I would have
been depressed and I don't knowwhat.
To tell you, folks, we have amarket.
Beans were up 25.
Soybean oil was limit up.
Corn went bid.
This was into a reallyfavorable weather report coming
(07:47):
in the weekend.
How's the weather up in theNorthern Plains, mr Wick?
It's feeling a little cool outthere today.
Speaker 2 (07:51):
It's surprising to me that the GDU units are pretty
much on track with where theyshould be at this point.
But I got to remember that inMay we were up in those 90s and
that hot, hot weather.
So we've averaged out, we'reright on trend as far as GDU
units.
But it's pretty cool out thereand rain.
You get south of the valleylike Sisseton.
(08:12):
South Dakota had seven inches,aberdeen had close to eight
inches of rain, uh early thismorning.
So a lot of folks underwaterright now.
Speaker 1 (08:20):
I did not know that sometime between when I went to
bed at two in the morning, wokeup at six, I didn't catch that
weather report, but you did.
Speaking of catching everything, how do people get a hold of
you?
You put out one of the best.
Uh, what do you?
How would you call your Mondayletter?
Speaker 2 (08:34):
uh, it's an e-newsletter called farm net
news.
It's a good snapshot of what'sgoing on in the world of
agriculture at FarmNews.
It's our recap of what's beenhappening.
You go to our website, rrfncom,and sign up.
We'd love to have you, mr.
Speaker 1 (08:48):
Don Wick, owner and big boss of the Red River Farm
Network.
I can actually call him afriend.
I don't know if he'll do thesame, but we'll see network what
I can actually call him afriend.
I don't know if he'll do thesame, but we'll see.
Hey, catch shows like this.
You can watch us on acres tv.
If you're listening on appleand spotify and all those things
, great.
If you're our friends over atacres tv, welcome aboard.
And, as always, I'm tom grisafi, agbo media, agbo trading.
(09:09):
I'm an ap associate person, anesvik trading.
This is the week in review for6, 13, 20, 25.
Jo, roll the tape.
See you, don.
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