China Corn Getting Cheaper Versus U.S. to Curb Imports

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Chinese corn futures are near the cheapest since 2012 relative to Chicago prices after China said it will wind up its state stockpiling program. The world’s biggest consumer holds more than half of the world’s reserves after government subsidies helped boost output. Cheaper local corn will narrow the gap with imported feed grains, decreasing the incentive for Chinese buyers to ship from abroad, according to Rabobank International.

India has extended a 25 percent import tax on wheat by three months to June 30, a government order said on Tuesday. The move is aimed at shielding domestic farmers from cheap imports particularly as wheat from the new-season harvest will become available by the end of this month, government sources told Reuters last week. India, the world's biggest wheat producer after China, raised the import tax to 25 percent from 10 percent in October.