Policy Impacts of Drought Today's WASDE report from USDA, with its sharp cut in corn yields, is having several important tangential policy impacts:
Ethanol: Rumors of possible reductions in the ethanol mandate have been floating in Chicago, but USDA Secretary Tom Vilsack today said, "We have no plan to adjust the Renewable Fuel Standard." Note that the next major crop report from USDA likely will include a sharp reduction in harvested acres as a result of the drought. Export Embargo: The trade was incensed today over a remark by one Obama Administration official that it is "premature" to discuss a grain export embargo. By saying it is premature means that it is not out of the realm of possibility -- though that seems highly unlikely...
Key Takeaways: President Trump announced $8 billion in additional agricultural assistance through the Harvest Fuel Relief Program, as USDA projects farm fuel and oil expenses will increase 28.8 percent in 2026. The package follows $12 billion in earlier relief, while government farm payments w...
Key Takeaways: A student group from the University of Chicago is protesting to bring back onion futures trading. Trading in onion futures was banned in 1958 following a spectacular bout of market manipulation that resulted in a corner of the physical market. The ban on onion futures led t...
Beef packer margins deteriorated to $141/head last week, down $55 from the prior week as fed cattle prices strengthened while the Choice cutout remained nearly unchanged. The cutout held near $373/cwt while fed cattle prices climbed $4/cwt to $224/cwt, narrowing processor profits. Despite the d...
