Loading…
A Bloomberg report, citing Kansas State University research, said the $28 billion trade bailout largely overpaid farmers, with cotton growers receiving the largest gains. Payments to cotton farmers in the second round were 33 times the estimated tariff impact.
The study noted that payments may not offset long-run trade losses.
Overpayment to some crops could keep acreage and output higher than market prices alone would support. The effect on feed-grain prices is limited.
arkansasonline.comMIKE DORNING BLOOMBERG NEWSMay 9, 2020After 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.
