February 24, 2009
China may buy 2 million tonnes corn in east producing areas
China is likely to buy 2 million tonnes of corn from the east producing areas to protect farmers' interests said an industry source Monday (February 23).
The purchase price will be RMB1,540 per tonne, higher than the current corn prices of RMB1,340-RMB1,500/tonne in the region, said two industry sources.
This would be on top of earlier purchase plans of a total of 40 million tonnes of corn from northeast producing areas.
The local state grain reserve houses are now preparing for the purchase, subjecting to the government's final announcement, said another source.
Corn prices have been sluggish since the bumper harvest last year, but they were higher recently, as farmers were reluctant to sell in expectations for the government's purchase plan.
