USDA NOT PLANNING ANY MAJOR PRICING CHANGES
The Agriculture Department is not
considering any major changes in its pricing system for posted
county prices, an Agriculture Department offical said.
    "We do not have current plans to make any major adjustments
or changes in our pricing," said Bob Sindt, USDA assistant
deputy administrator for commodity operations.
    U.S. grain traders and merchandisers said earlier this week
USDA might act soon to reduce the cash corn price premium at
the Gulf versus interior price levels by dropping ASCS posted
prices to encourage interior PIK and roll movement.
    But Sindt denied USDA is planning any such changes.
    "If people are suggesting that we are going to make
wholesale changes in pricing, we are not considering this," he
said.
    Sindt, however, did not rule out the possiblity of
implementing more minor changes in its pricing system.
    "We are continually monitoring the whole nationwide
structure to maintain its accuracy," he said. "If we become
convinced that we need to make a change, then appropriate
adjustments will be made."
    Sindt acknowledged that concern has been voiced that USDA's
price differentials between the New Orleans Gulf and interior
markets are not accurate because of higher than normal barge
freight rates.
    He said commodity operations deputy administrator Ralph
Klopfenstein is currently in the midwest on a speaking tour and
will meet with ASCS oficials in Kansas City next week.
    Sindt said a number of issues will be discussed at that
meeting, including the current concern over the gulf corn
premiums.
    He defended the USDA differentials, saying that these price
margins reflect an average of prices throughout the year and
that seasonal factors will normally cause prices to increase or
decrease.
    The USDA official also said that only those counties that
use the Gulf to price grain are being currently affected by the
high barge freight tariffs and increased gulf prices.
    When asked if the USDA emergency storage program which
allows grain to be stored in barges was taking up barge space
and accounting for the higher freight rates, Sindt discounted
the idea.
    He said USDA has grain left in only about 250 barges and
that, under provisions of the program, these all have to be
emptied by the end of March.
 Reuter
