U.S. Getting Set to Announce First Phase of Coronavirus Farm Assistance
- USDA will reportedly make $15.5 billion available in the plan's first phase.
- The initial plan will include direct payments to farmers and ranchers, along with other support measures.
- USDA could announce the initial plan as early as this week.
- Funds are expected to come from $9.5 billion allocated to agriculture in the CARES Act and $6 billion already in CCC funding.
- The Director of Congressional relations for the American Farm Bureau Federation said more aid is expected going forward.
- The CARES Act also added another $14 billion to the CCC, but those funds won't be available until after June 30.
FBN’s Take On What It Means: An assistance package has been expected since Congress passed the coronavirus stimulus bill, or CARES Act, last month, but it was expected that details would not be announced until after planting so as to have less impact on producers’ plans. However, the administration needs to ensure the pandemic doesn't trigger consumer food shortages as meat packers shutter, dairy producers dump milk, and farmers struggle to find workers to harvest, plant and deliver crops.
Russia’s Wheat Situation
- Dryness concerns have been floated in the market about Russia.
- Its winter wheat crop typically is a couple of weeks behind Kansas.
- The critical time for moisture is approaching for Russia, but there still is time to make up for dryness concerns.
- Rains are in the forecast for the coming week, but moisture will be needed after that time.
- Private firm SovEcon is forecasting wheat harvest at 84.4 million tonnes.
- That would be up nearly 10 million tonnes from 2019’s harvest.
- Spring wheat plantings have begun.
- Russia’s March exports were solid at 3.1 million tonnes.
FBN’s Take On What It Means : The weather situation in Russia is not yet to the point that much concern is present for a major loss in production. A large crop out of Russia poses threats to US export potential, especially for HRW. Without a weather problem for Russia or the US HRW area, futures could be reluctant to find much more strength.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
