Weaker markets this morning with corn down 2 and soybeans down 11. News that the US and Mexico had reached an agreement on trade along with news that Canadian Trade Minister is scheduled to meet with his counterpart in Washington DC has help to increase the optimism that negotiations will produce a new NAFTA by the end of the week. President Trump continues to highlight the fact that the US farmer will be one of the largest beneficiaries of the new deal between the US and Mexico as they are the biggest buyer of US corn.
The USDA announced a farm aid package totaling 4.7B for losses incurred through the White House’s trade war with China. Soybean farmers have obviously taken the brunt of the retaliatory efforts from China and as such will receive the bulk of this payment. According to the package outlined yesterday, soybean farmers will receive $1.65/bu. times .50% of their 2018 production. Corn farmers are left feeling slighted as they are only scheduled to receive just $.01/bu. and no payments for wheat growers. The USDA has not ruled out a second round of financial aid in December should the trade war with China stretch into this winter.
Have a Safe Day!