Rising oil prices and dwindling stockpiles lead to record corn prices. Sound familiar?
Corn prices yesterday rose to highs of 2.45 per cent above their past highs of June 2008, when the same combination caused a similar effect.
Corn futures have increased 22.9 per cent since the start of the year to hit US$773.25 a bushel.
A report from the US agriculture department showed US corn stocks had fallen to 6.52 billion bushels on March 1, down 15 per cent from the same month last year.
The department's World Agricultural Supply and Demand estimate, scheduled to be released today, is expected to make distressing reading for food-importing countries.
"The market's waiting to see what happens there," said Erin FitzPatrick, a commodities analyst at Rabobank. "As a result of lower stocks, we're expecting they're going to reduce ending stocks again for the entire year."
Economists are now predicting another cycle of cost of living increases in emerging markets, as food suppliers adjust to tightening markets for food supplies worldwide, according to a report from Goldman Sachs.
"We expect food prices to continue to rise and push emerging market headline inflation higher until the summer months," the report said.
As recently as last month, prices were depressed as Japan's disasters reduced demand and unrest in the Middle East led to a "dramatic pullback in risk appetite", Ms FitzPatrick said. But consumption of corn, particularly as fodder for livestock and for use in bio-ethanol, has swiftly recovered.
"There had been no change in the underlying fundamentals," she said.
In addition, with New York Mercantile Exchange crude futures prices at $109.13 a barrel and Brent crude at $121.86 a barrel, blending ethanol was again starting to "look competitive to gasoline", Ms FitzPatrick added.
A 45 cents a gallon tax credit available for ethanol in the US was also looking increasingly attractive to American farmers, meaning more farmland was being turned over to that use, she said.
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Tenants also require a letter of no objection from their landlord before being allowed to list the property.
There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.
Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Bookshops: A Reader's History by Jorge Carrión (translated from the Spanish by Peter Bush),
Biblioasis
TWISTERS
Director: Lee Isaac Chung
Starring: Glen Powell, Daisy Edgar-Jones, Anthony Ramos
1: Commit to countering all types of terrorism and extremism in all their manifestations
2: Denounce violence and the rhetoric of hatred
3: Adhere to the full compliance with the Riyadh accord of 2014 and the subsequent meeting and executive procedures approved in 2014 by the GCC
4: Comply with all recommendations of the Summit between the US and Muslim countries held in May 2017 in Saudi Arabia.
5: Refrain from interfering in the internal affairs of countries and of supporting rogue entities.
6: Carry out the responsibility of all the countries with the international community to counter all manifestations of extremism and terrorism that threaten international peace and security
