New policies seen to stabilise China's corn market in 2009

China's corn prices are expected at a stable level this year as the government raises its capacity in price regulations by taking advantage of large corn reserves, said experts.

China raised corn reserves thrice in 2008 to absorb 30 million tonnes, with the crop accounting for 20 percent the country's total grain harvest for crop year 2008-09 and about 45 percent of the output from the largest production base.

Experts said such reserves are enough for the Chinese government to curb sharp ups and downs in the corn market this year.

The corn price on the domestic futures market is predicted to hover around a benchmark of 1,500 yuan/tonne in 2009. Some analysts believe corn may hit 1,700 yuan/tonne if supplies are depleted in marketing areas.

US$1 = RMB6.83502 (Feb 5)