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Here are the main highlights for some of Australia's key commodities and economic influences for this month. The full report provides an overview of the developments to watch in the upcoming weeks.
The European Commission proposed on Thursday removing duties on imported US industrial goods in return for reduced US tariffs on European cars, a key part of the trade agreement the EU and the United States struck last month, reported Reuters. The proposals mark the EU's first step in enacting the framework agreement between US President Donald Trump and Commission President Ursula von der Leyen on July 27, which saw the EU accept a broad 15% tariff to avoid a damaging trade war.The United States agreed to reduce its tariffs on cars built in the European Union to 15% from 27.5% from the first day of the month in which the EU's legislative proposal was presented - meaning now from August 1.The agreement ended conflict between the world's two largest trading and investment partners, although it is an asymmetric deal, with Brussels required to cut its duties and buy more US energy products while Washington retains tariffs on 70% of EU exports.
Trump has periodically railed against the European Union, saying in February that it was "formed to screw the United States" and has been critical of the US merchandise trade deficit with the EU, which in 2024 amounted to $235 billion.EU governments have broadly said they accept the deal as the lesser of evils, mindful that Trump was otherwise set to impose 30% tariffs on almost all imported EU goods.The impact of removing industrial goods tariffs may in fact be modest, with two-thirds already tariff-free. The average EU rate for US goods is 1.35%, according to economic think tank Bruegel, although the EU does charge 10% for cars.
The EU proposals also include farm produce concessions, such as zero tariffs on potatoes, reduced rates for tomatoes and quotas with zero or low tariffs for pork, cocoa and pizza.It has excluded beef, poultry, rice and ethanol."We are protecting our defensive interests there. What we are giving are commitments that are certainly meaningful, but at the same time, I would observe that are not very costly for us today," a Commission official said, adding that other G7 countries had already liberalised trade with the EU.The EU's legislative proposal will need to be approved by a majority of the EU's 27 members and by the European Parliament, which could take several weeks.
Proponents of the deal recognise that increased US tariffs remain, but point to a unique arrangement for the European Union whereby pre-existing US duties, such as 2.5% for cars and up to 20% for cheeses, are not added to the broad 15% rate.Some products, including aircraft, cork and generic drugs are exempt from the 15% tariff, but steel, aluminium and copper are stuck at 50%.
The agreement makes little mention of digital services. However, Trump on Monday threatened additional tariffs on all countries with digital taxes or regulations.
Chicken meat prices continued to rise in the Brazilian domestic market, extending a trend observed since early August across many regions monitored by Cepea, according to a recent market report.
This increase is attributed to firm domestic demand and stronger export activity at the beginning of the month.According to industry players surveyed by Cepea, Brazil’s Father’s Day (August 10) and the typical rise in consumption tied to early-month wage payments contributed to higher demand for chicken meat.Although chicken exports have yet to return to pre-bird flu levels, volumes have grown since Brazil regained avian flu-free status. In fact, shipments have already surpassed the average for the same period last year.In the first six working days of August, Brazil exported an average of 18,800 tonnes of chicken meat per day, up 15.1% from July and 16% more than in August 2024, according to Secex. That’s equivalent to an average of 41.4 million reais ($7.6 million US) in daily export revenue.
World Farming Agriculture and Commodity news - Short update 25th August 2025
Beef Export Sales (2025):
Net sales reached 13,600 metric tons (MT), a 34% increase from the previous week and 40% above the 4-week average. Key markets included Japan (7,700 MT), South Korea (1,500 MT), Hong Kong (1,200 MT), Mexico (1,000 MT), and Taiwan (900 MT). Exports totaled 11,500 MT, up 4% from the prior week but down 6% from the 4-week average, with primary destinations being South Korea (3,600 MT), Japan (3,500 MT), Taiwan (1,200 MT), Mexico (1,000 MT), and Canada (800 MT).
Pork Export Sales (2025):
Net sales surged to 42,400 MT, significantly up from the previous week and 53% above the 4-week average. Major buyers were Mexico (26,700 MT), Colombia (3,400 MT), Japan (2,500 MT), the Dominican Republic (1,400 MT), and Guatemala (1,400 MT), offset by minor reductions for Cuba (100 MT). Exports were 25,600 MT, down 10% from the previous week and 7% from the 4-week average, mainly to Mexico (12,600 MT), Japan (2,900 MT), South Korea (2,400 MT), China (2,300 MT), and Canada (1,000 MT).
Mexico Screwworm Outbreak:
Mexico reported 5,086 screwworm cases in animals as of August 17, 2025, a 53% increase from July, with 649 active cases affecting cattle, dogs, horses, and sheep. The flesh-eating parasite, spreading north since 2023, threatens livestock and wildlife, with a potential $1.8 billion impact if it reaches Texas. USDA is sending a team to Mexico to verify containment efforts, following a U.S. human case linked to El Salvador. Concerns remain about cases nearing the U.S. border, with the closest reported 370 miles away.
Brazil Beef Tariffs and Trade Shifts:
A 50% U.S. tariff on Brazilian beef, effective August 6, is redirecting global trade. Brazil exported 10,200 MT to Mexico in August, surpassing the 7,800 MT to the U.S. Mexico, Australia, and Argentina are expected to fill U.S. demand, while Brazil targets markets like China. Brazil is also expanding meatpacking plants for Mexico exports, with shipments to Mexico nearly tripling from last year.
Food Inflation Outlook (2025):
USDA forecasts a 2.9% rise in food prices, with beef and veal up 9.9% due to shrinking cattle herds and strong demand, and pork up 1.6%. Grocery prices (+2.2%) lag behind restaurant prices (+3.9%).
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