China corn prices up on government buying; may gain near-term

Corn prices in China inched up a little in the week to Wednesday (March 4), as continued purchases by the government from the country's biggest growing areas to prop up prices showed results.

Rates in Changchun in Jilin province, a major producer, were around RMB1,450 a tonne, up RMB30/tonne from a week earlier. It also rose by the same extent in Dalian in Liaoning province to RMB1,570/tonne.

In Shekou port in Guangdong province, a key sales point, it increased RMB10 from a week ago to RMB1,630/tonne.

"Corn prices are largely being supported by the 40-million-ton government buying plan, and that's why we are seeing the steady rise this week," said Xu Wenjie, an analyst with Tianma Futures Co.

China last month said it will purchase another 10 million tonnes of corn from its producing areas in the northeast to stabilize local prices, over and above an earlier plan to buy 30 million tonnes.

Xu said corn prices will continue to get support in the near term from the buying program.