Country News
Argentina: The government’s new tax and trade policies have energized farmers into growing more wheat and corn. Farm equipment sales are expected to rise for the first time in three years. South American sales of harvesting combines will be up 20 percent and tractor sales will rise by 15 percent. (Reuters)
China: The Grain Reserve Corporation has lowered the purchase price of corn by 100 yuan ($14.50) per ton, indicating an early end to post-harvest purchasing. Total corn procurement is down and auctions begin next month with the National Development and Reform Commission seeking a balance in sales that will repress imports but not hurt farmers. Instead, there will be an effort to verbally persuade farmers to switch from corn to soybean production. Grain and Oil News reports rumors that 2013/14 stocks of corn will be sold at a 33 percent discount to their acquisition price, and that 2011/12 corn stocks will be sold to distillers at a 38 percent discount to their original acquisition value.
Separately, Sinograin says that state grain reserves of corn will begin selling next week, well ahead of the usual May start date. (Bloomberg)
France: The bird flu outbreak will reduce total feed demand by 330,000 tons this year. Maize growers had said last month they expect a 150,000-ton reduction in demand due to the flu. (Reuters)
India: The government slashed subsidies for potash by 20 percent, which will force a rise in prices for the key production input. Higher prices are expected to reduce utilization and thus affect the production of crops like corn, rice and soybeans. (Reuters)
Zimbabwe: Agriculture Minister Dr. Joseph Made says that maize production will be 2.5 MMT this year, up from an earlier projection of 2 MMT. The Grain Marketing Board is offering farmers the equivalent of $390/MT for their maize via a $500 million, three-year campaign. Imports will be cut off via a government order of not issuing import permits. (Zimpapers LTD)