
An analysis by Joe Glauber estimates US trade-distorting farm subsidies will reach about $32.7 billion for 2019, above the $19.1 billion WTO limit. He projects the total could exceed $40 billion in 2020 depending on additional coronavirus aid.
Subsidy levels above WTO limits could invite legal challenges from trading partners and raise trade-policy risk for US farm exports. Continued heavy support also supports US production, which is mildly bearish for grain and oilseed prices.
After 1,623 past policy events, Corn moved a median +0.1% over 5 sessions (51% higher; middle half -1.4% to +1.5%), and +0.4% over 20.
After 1,905 past policy events, Soybeans moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% to +1.8%), and +0.2% over 20.
After 1,019 past policy events, Wheat (SRW) moved a median -0.1% over 5 sessions (49% higher; middle half -1.7% to +1.5%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.