February 21, 2008

China's corn transaction rate in central reserves at 28 percent

China's auction for 500,000 tonnes of corn in central reserves on the Anhui Grain Wholesale and Trade Market was completed yesterday, with transaction rate at 28 percent.

According to the National Grain and Oil Trade Center, although the plan was to sell 500,051 tonnes of corn, the actual volume was only 140,737 tonnes.

The highest and lowest transaction price was RMB1,840 (US$258) per tonne and RMB1,700 (US$238) per tonne respectively, with the average transaction price at RMB1,764 per tonne.

Analysts forecast that the domestic demand for corn will not increase significantly for a short while after the 2008 Spring Festival.

However, sales are estimated to peak after the spring plowing period in China.

Observers project the corn market to be stable in the near future.