March 8, 2007

China's corn prices stable amid sufficient stocks, weak demand

China's corn prices in major producing regions were largely stable in the week to Wednesday (Mar 7), as processing plants were reluctant to purchase amid a large amount of stocks.

In Jilin, China's largest corn-producing province, the prices of average quality corn were quoted at RMB1,060-1,160/tonne, compared with RMB1,040-1,160/tonne a week earlier.

Prices in Heilongjiang province, another major corn producing region in the northeast, were around RMB1,020/tonne, flat with the level in the previous week.

Average prices in Shandong province were also largely stable at the pre-holiday level of RMB1,510-1,570/tonne.

Corn processing plants have just resumed production after the Lunar New Year break, and demand is yet to pick up, said a local corn trader.

Government offices, businesses and financial markets were closed Feb 19-23 for the holiday.

Traders expect corn prices to remain stable in the next month or two, supported by increasing demand.