Good Morning,
Prices at the CBOT trading higher with corn up 3, beans up 1 and wheat up 4 cents. The US Dollar is down at 101.65 and crude oil is down $0.75 to $23.35.
The Trump administration struck a deal with Senate Democrats and Republicans on an historic rescue package that tees up more than $2 trillion in spending and tax breaks to bolster the hobbled U.S. economy and fund a nationwide effort to stem the coronavirus. The legislation was still being drafted but Senate Majority Leader McConnell said the Senate would vote on it Wednesday. It would still have to pass in the House before it gets to President Donald Trump’s desk.
For individuals the package provides direct payments to lower- and middle-income Americans of $1,200 for each adult, as well as $500 for each child. Unemployment insurance would be extended to four months, the benefits would be bolstered by $600 weekly and eligibility would be expanded to cover more workers.
The coronavirus bill provides for $50B in funds to the CCC and directs the USDA to provide several avenues of relief to the American farmer including MFP payments and an aid program for US cattleman. Potential payment would likely dwarf last years payments as they essentially to farmers to “farm for the government.” Expectations are that the USDA will wait until after spring planting is complete before announcing any payments and how they will be distributed to avoid any distortions in planting intentions.
Cash markets will have to be watched closely today as China was reportedly inquiring about 250 TMT of US corn out of the Gulf. If the rumors are true it would push total Chinese purchases over the last week or so to 1.0 MMT and fulfill Beijing first allocation of duty-free import licenses.
Have a Safe Day!
Garry Gard
920-348-6844
ggard@didionmilling.com
