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USDA launched its trade mitigation package, opening sign-ups for the Market Facilitation Program for producers of certain commodities. It also announced government purchases of identified commodities for food distribution and began accepting proposals for the Agricultural Trade Promotion Program.
The department said it will authorize up to $12 billion in total, consistent with WTO obligations.
Direct payments and purchases cushion farm income hit by retaliatory tariffs but do not restore lost export demand, so the effect on feed-grain and soybean prices is mostly to slow acreage and sales adjustments. Government buying of select commodities could give modest support to those specific prices.
usda.govSep 4, 2018After 554 past neutral policy events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.4% to +1.6%), and +0.6% over 20.
After 439 past neutral policy events, Corn moved a median +0.1% over 5 sessions (51% higher; middle half -1.3% to +1.2%), and +1.1% 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.
