U.S. Senate panel approves farm bill

May 14, 2013

The Senate Agriculture Committee approved a five-year farm bill on Tuesday, which would cut spending while creating new programs and subsidies for farmers. The bill now goes to the Senate floor, with a vote that could be called as early as this month. The farm bill would expand spending on federal crop insurance by 10 per cent, while making cuts to the food stamp portion of the legislation.

The legislation includes concessions to Southern rice and peanut farmers, which Mississippi Sen. Thad Cochran strongly advocated for. The bill seeks to eliminate $5 billion in annual direct payment subsidies, which Southern farmers rely on while making it easier for them to qualify for other subsidies if prices decline. The bill calls for $2.4 billion a year in cuts, while the House version would attempt to save $4 billion out of $100 billion annually. A major chunk of the savings comes from direct payments. The savings would be allocated towards deficit reduction, creation of new programs and subsidies for farmers.

The extended farm bill expires Sept. 30.

Video: U.S.-China Trade “Truce” + U.S. Fed Cuts Rates Again

The market was hoping for a US-China trade deal, but we got a trade “truce” for now from the keenly awaited Trump-Xi meeting at the APEC Summit.
China commits to minimum purchase commitments of 12 MMT of U.S. soybeans during the “current season” and a minimum of 25 MMT annually through 2028.
U.S. Treasury Sec Bessent said other Asian countries have agreed to buy additional 19 MMT of US soybean.
Soybean futures trading above $11 now- they normally tend to rally to $12.
As expected, US Fed cuts interest rates by -0.25% again in October to 3.75%–4.00%. No further cuts promised for this year but trade looking out to the Dec FOMC.
The Bank of Canada cut interest rates to 2.25% but raised concern over trade war damage.
Soy meal futures, remarkably, have had 14 consecutive higher close sessions. A bull market in soybeans is a bull market in soy meal!
Cattle futures lower as funds unwind out of cattle for now due to Trump headlines and objective to lower beef prices.
All major stock indices climb to new record highs. It was Mag 7 reporting week, which had mixed results. But we now have the first $5 trillion company in Nvidia!