The US Government has rolled out a 16 billion dollars aid package for the US agriculture sector to offset the losses from the trade conflict with China. According to Wall Street Journal the commodity prices have sank to the lowest level in more than 10 years while the expectation is that the trade conflict will hinder the agritrade between the countries.
According to WSJ this program is similar to the aid initiative in 2018 which was about 12 billion dollars founding for farmers. This initiative is about direct aid to farmers.
The S&P GSCI Agricultural Commodities index was trading today up 0,06 % to 274,30 points. During one year time the index has dropped by 18,59 % and 5-years time by 13,40 %.
Soybeans are the biggest product crop to be exported to China. Before the conflict the US shipped 10 billion – 12 billion dollars of soybeans to China a year, writes the WSJ.