London, Monday, December 17, 2007 -- ARANCA NEWSTRACK – (aranca)
India, Republic of (Press Release) December 18, 2007 --
The global grain markets may become more bullish due to China's decision to remove tax incentives and discourage the export of a range of crops, the central government website said today.
Analysts predict the move to boost demand for corn grown in the United States and boost prices.
"This will help the US dominate the Asian market,'' Chen Baomin, analyst at one of the two authorised corn exporters in the US, Jilin Grain Group, told Bloomberg.
"We don't expect China to export corn next year after this decision on tax rebates," he added.
China is the biggest grain consumer in the world and is trying to secure its domestic supplies and keep a lid on food price inflation.
Wheat, rice, soybeans, corn, barley and oats will all be affected, as will flour produced from these grains. The tax cuts will come into effect on December 20th.
In 2007, China has so far exported 4.9 million tonnes of corn and 1.2 million tonnes of rice, an increase of 85 per cent and seven per cent respectively, according to preliminary customs data.
Further analysis of the global grain market could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
Copyright and Disclaimer:
Copyright 2007, Aranca. All Rights Reserved.
All the contents of this Site are only for general information or use. They do not constitute advice and should not be relied upon in making (or refraining from making) any decision.
Editors/Journalists/Blogs are invited to request republishing/dissemination rights. All requests to republish Aranca material for distribution should be addressed to:
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Tel: +91.22.4005 2219 / +91.22.6725 8115
Analysts predict the move to boost demand for corn grown in the United States and boost prices.
"This will help the US dominate the Asian market,'' Chen Baomin, analyst at one of the two authorised corn exporters in the US, Jilin Grain Group, told Bloomberg.
"We don't expect China to export corn next year after this decision on tax rebates," he added.
China is the biggest grain consumer in the world and is trying to secure its domestic supplies and keep a lid on food price inflation.
Wheat, rice, soybeans, corn, barley and oats will all be affected, as will flour produced from these grains. The tax cuts will come into effect on December 20th.
In 2007, China has so far exported 4.9 million tonnes of corn and 1.2 million tonnes of rice, an increase of 85 per cent and seven per cent respectively, according to preliminary customs data.
Further analysis of the global grain market could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.
Copyright and Disclaimer:
Copyright 2007, Aranca. All Rights Reserved.
All the contents of this Site are only for general information or use. They do not constitute advice and should not be relied upon in making (or refraining from making) any decision.
Editors/Journalists/Blogs are invited to request republishing/dissemination rights. All requests to republish Aranca material for distribution should be addressed to:
Aranca Syndication Service at syndicate@aranca.com.
Tel: +91.22.4005 2219 / +91.22.6725 8115
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