P. M. BRIEFING : Soviets Buy Subsidized Wheat
The Soviet Union, acting one day after the Agriculture Department predicted a huge U.S. wheat crop, bought 250,000 metric tons of soft red winter wheat at subsidized prices today.
The wheat was worth about $34.8 million, based on Chicago prices.
There are 36.7 bushels of wheat in a metric ton of 2,204.6 pounds, so the deal called for delivery of 9.17 million bushels of wheat during June.
The wheat was sold through the Export Enhancement Program, the major U.S. export subsidy program. Under it, exporters receive bonus amounts of surplus commodities if they lower their prices to make a sale to a targeted country. Two exporters received subsidies worth $18.18 a ton, or 49.5 cents a bushel, for the deal.
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