The recently passed tax law included a provision that gives farmers a larger tax savings if they sell their goods to cooperatives. Now grain companies, angered by what they see as an advantage being given to their competitors, are setting up their own cooperatives in case the law isn’t amended.
The mammoth U.S. grain harvest and reduced competition from South America will set the stage for a rapid increase in exports over the next six months, the chief executive of ADM told analysts. Agrimoney quoted ADM leader Juan Luciano as saying, "Demand continues to be strong and the United States is competitive now for the future months."
A Chinese government commission announced the merger of COFCO, the nation's largest food trader, with Chinatex Corp., one of the country's main textile and grain-trading groups, said China Daily. The new company will be "a bigger rival to compete with the so-called ABCD companies." The "ABCDs" are the long-time international farm export and processing companies — ADM, Bunge, Cargill and Louis Dreyfus.
Bunge and Archer Daniels Midland, two of the largest grain processors in the country, say they will not accept delivery of a new genetically engineered soybean strain from Monsanto because of marketing questions, reported Bloomberg. The European Union has not approved the strain, called Roundup Ready 2 Xtend, for import.
The Canadian Pacific is being sued by agri-processor ADM, which says service disruptions at its plants in North Dakota and Minnesota in 2013 and 2014 were due to the railroad's cost-cutting and pursuit of merger partners.
ADM, the world's largest corn processor, sued Syngenta in state court in Louisiana over cargoes of corn rejected by China because they contained an unapproved Syngenta variety, said Bloomberg.
At least one soybean exporter in Brazil has agreed to collect royalties for Monsanto, the giant seed company, from growers who plant biotech seeds that contain Monsanto's traits, said Reuters, citing industry sources.