Trump Administration Announces $12 Billion Stimulus Package for Farmers
To ease some of the pain inflicted on American farmers via the Trade War with China, President Trump has announced $12 billion worth of aid. The announcement was moved up weeks ahead of schedule and payment sign-up is expected to begin around Labor Day (Sep 3). USDA Chief Economist Rob Johansson clarifies that this is a “one-time” program intended to help President Trump negotiate trade deals with China or NAFTA. Details made available state that the USDA will use the $12 billion to strengthen export marketing and to purchase ag products from farmers. Farmers growing corn, wheat, cotton, sorghum, soybeans, hogs, and dairy can expect payments.
Australian and European Wheat Crops Under Significant Drought Stress
Recently, the Australian Bureau of Agricultural and Resource Economics cut their wheat production estimate by almost 8% to 21.9 MMT as drought has severely affected the eastern half of the country. Australia is the world’s 4th largest exporter of wheat. In Europe, consulting firm Strategie Grains cut their soft wheat production estimate to below 130 MMT, the lowest for the EU since 2012. Hot, dry weather over the last few weeks in Germany, France, Sweden, and Denmark was their motive for the reduction. The Dec Euronext milling wheat contract traded at 200 euros per tonne, the highest since July 2015. SovEcon also expects Russian wheat yields at a 3-year low. Recent rains have also complicated harvest, which stands at 27% complete.
Bunge to Shut Down Soybean Crushing Plant In Argentina
Following weak quarterly results, Bunge has decided to close a bean crusher at the port of Ramallo in Argentina, laying off 60 workers. In 2017, Bunge exported 11.2% of the 32.8 MMT of bean meal from Argentina. A reduced Argentine bean crop of only 37 MMT complicated exports of the largest soybean meal and oil exporting country in the world.
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