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The USDA said initial aid will total about $6 billion, starting after Labor Day, including about $4.7 billion in direct payments to producers of seven commodities and up to $1.2 billion in government purchases. A further up to $200 million will go to developing foreign markets for farm products.
The aid cushions the tariff hit to US farm revenue, but it does not replace lost export sales, so underlying bearish pressure on soybean and grain prices from the trade dispute persists.
cnbc.comJeff DanielsAug 27, 2018After 369 past bearish policy events, SOY moved a median -0.2% over 5 sessions (46% higher; middle half -1.7% to +1.8%), and +0.8% over 20.
After 310 past bearish policy events, CORN moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.6% over 20.
After 102 past neutral policy events, LCATTLE moved a median +0.6% over 5 sessions (63% higher; middle half -0.7% to +1.2%), and +1.3% over 20.
After 26 past neutral policy events, HOGS moved a median -0.9% over 5 sessions (38% higher; middle half -2.6% to +1.7%), 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.
