More domestic support for soybean production was announced on Thursday with the Ministry of Agriculture, the National Development and Reform Commission, the Ministry of Finance, and the State Grain and Reserve Bureau all coordinating to increase support for domestic soybeans.
According to the announcement, these parts of the government will work together on issues such as subsidies, insurance, soybean purchases, and stockpiling that will provide a ‘combination punch’ of support for the domestic soybean industry.
The announcement lays out ten items to support the domestic industry, but most of these were already underway. They include increasing subsidies, increasing subsidies for crop insurance, promoting corn and soybean strip planting, and expanding stockpiling operations in the northeast.
There wasn’t much new in the release and the announcement seems to be just combining most of the ongoing projects and subsidies into one clear announcement.
The market did not react and No.1 domestic soybean futures were down nearly 1% and have now given back all of their gains from last week’s stockpiling announcement.
Sitonia previously covered the government’s aggressive push to expand soybean production in a long article on February 6: Soybean ‘revitalization’ efforts bullish for long-term corn imports.