"Countries such as Argentina, Kazakhstan, India and Vietnam have stopped their farmers selling crops abroad or taxed exports heavily in an effort to keep localmarkets well-supplied and local prices for those crops low. This means the farmers in these countries are not benefiting from record international prices. At the same time, these farmers are facing higher costs in the shape of higher prices for diesel, seed and fertilizers. The result? Some farmers are cutting their acreage."
So who could benefit from this miserable situation?
Trust the good guys over at Jamie Dimon's shop to point out in a flash note today that China is increasing tariffs on fertilizer exports by a huge amount to try and keep more of the stuff at home (and affordable.)
Beggar-thy-non-Middle-Kingdom-neighbours and (further) enrich fertilizer companies everywhere (except in China)...
"The Chinese State Council announced today (April 17) that a decision has been made to impose a special tariff of 100% on exports of fertilizer and fertilizer raw materials from China... effective from April 20 through September 30, 2008... Substantially Lower Chinese Exports Likely... (this) will further tighten the global supply/demand balance."
Stumble It!
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