China National Cereal Company along with Oils and Foodstuffs Corporation announced a merger with Chinatex. The goal is to create a bigger company to compete with the “ABCD companies” in global grain trading. World Grain Dot Com said the term ABCD refers to companies that act as a middle man between farmers and grain markets in global trading. The groups are ADM Company, Bunge Limited, and Cargill Incorporated from the U.S., along with Louis Dreyfuss SAS in the Netherlands. Chinatex is one of the nation’s main textile and grain trading groups, and will now become a subsidiary of the nation’s biggest food trader after the merger. This indicates that the central government will now push ahead with efforts to redo state-owned enterprises this year. The three companies are huge in terms of total volume of grains traded. The total amount of purchased corn exceeds domestic volumes, and the soybean import volume accounts for more than 30 percent of the total imports into China.