April 8, 2010

Corn prices in China's major producing areas were higher in the week to Wednesday (Apr 7) as traders hiked bidding prices in contention for supplies.

Farmers were also selling the crop more actively as temperatures are rising and spring planting is expanding to more areas.

Prices in Zhaodong in Heilongjiang province were around RMB1,590 (US$233) a tonne, up RMB40 (US$5.9) from a week ago. Prices in Dehui in Jilin province were at RMB1,660/tonne (US$243), up RMB20 (US$2.9).

Corn supplies held by industrial processors in the northeast are lower than in the same period last year, while corn starch supplies are also low, prompting expectations of higher corn prices, the China National Grain and Oils Information Centre said in a note.

Expectations that corn prices will rise also boosted volumes sold in the government's weekly corn auctions, and corn prices in both the northeast major producing areas and southern consumption areas are at their highest levels since the 2009 harvest season, it said.

Corn trading in the northeast is likely to be more active in the coming week, as demand from feedmeal processors and the breeding industry will start to recover significantly, the China Grain Network said in a note.