Unnecessary Protectionism The pro-trade group, Hinrich Foundation, correctly calculates that the relative commercial strengths of the U.S. and Brazil make them perfect free trade agreement partners. After all, the U.S. is more competitive in capital goods, consumer products and machinery, while Brazil’s strengths are in agriculture, intermediate goods and minerals. The difference in the two countries’ Revealed Comparative Advantage is just 16 percent, yet Brazil imposes border protection that is nearly 4,000 percent greater. Indeed, if Brazil has a comparative advantage in animal products, hides and skins and vegetables, why does it need to impose tariff rates on these products that are an average 250 greater?
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What You Need to Know Today: Commodities were mostly lower across the board today after yesterday’s Federal Reserve meeting hinted at a potential interest rate hike later in 2026. The dollar index reached its highest level in over a year, and a strong dollar makes U.S. agricultural expor...
Tomorrow is the Juneteenth federal holiday, and the USDA, along with the rest of the federal government and the CME, will be closed, so the monthly Cattle on Feed report was released a day early. The total number of cattle on feed in feedlots with 1,000 head or more capacity on 1 June amounted...
