April 3, 2008

 

China corn prices mixed ahead of spring planting

 

 

Corn prices in China were mixed in the week to Wednesday, with prices higher in northeast producing regions and lower in southern consumption areas.

 

Corn purchase prices in Changchun city in major producer Jilin province were around RMB 1,390 per tonne, up RMB 20 from a week ago.

 

Prices of corn arriving in Nanning city in southern Guangxi province were between RMB 1,800 to RMB 1,810 per tonne, down RMB 40 to RMB 50.

 

Prices of corn arriving at Shekou port in Guangdong province were between RMB 1,680 to RMB 1,690 per tonne, down RMB 40 to RMB 50.

 

Feed meal demand is unlikely to strengthen in the near term, and prices were lower amid a large amount of corn arriving in consumption regions, the Jilin Grain Administration said in an article published on its website.

 

Farmers in the producing regions have dwindling corn stocks and are increasingly reluctant to sell, helping to support prices.

 

An ongoing drought in northeast China may also affect corn planting there, adding uncertainties to the unit yield.

 

Rainfall in northeastern and northern China as of March 19 was at 50-year lows and the drought is likely to continue in April, the Office of the State Flood Control and Drought Relief Headquarters said on Wednesday.

 

Corn prices are likely to remain strong in northeast producing regions and weak in central and southern consumption regions ahead of spring planting in late April, said a local analyst.