February 19, 2008

China's corn and wheat prices dip in January

At the end of January, China's corn and wheat prices started to drop after state control measures, a representative of the State Administration of Grain said.

The average transaction price of the government-held corn reserves stood at RMB1,752 (US$254) per tonne, down by RMB35 per tonne (US$4.9) from the maximum transaction price in December 2007.

Meanwhile, the average minimum wheat purchase price reached RMB1,516 (US$212) per tonne, declining by RMB40 (US$5.6) per tonne when compared to the average maximum price in November 2007.

Prices of China's main types of grain have been increasing steadily since the beginning of 2007, while most grain prices have approached or have already reached high levels, dictated by international and domestic market factors.