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.
  

