South central kansas | Edit: I saw your edit, I was merely stating that I missed it too.
The russian grain deal was for three years and the soviets were to buy $750 million of grain over the next three years, the US stipulated the soviets were to buy at least $200 million at minimum the first year, rather than the maximum. But what the US didn't realize was just how desperate the soviets were for grain and as result of soviet duplicity, they bought all of it primarily in one fell swoop.
The russians after signing the deal with the Nixon administration, negotiated directly with the grain companies. In August, in secret without disturbing the domestic market, and about one month later the USDA found out the soviets had bought all three years of grain purchases in just about 2 months time. I would assume the grain companies had ownership of the grain, and that is why basis didn't move, but I don't have any figures to say how much the commercials owned of wheat, but futures began to rise after the government announcement of a grain deal and even more so after the full extent of the "robbery" became known.
Also, the US government had different farm programs than what they do today. From the New York times.
"The Russians were able to continue to buy wheat at the prevailing world price of $1.63 to $1.65 a bushel because a United States Government subsidy to dealers made up the difference between world and domestic prices. "
Edited by zenfarm 1/19/2019 15:21
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