April 11, 2007

 

China corn prices stable, demand from feed sector sluggish
 

 

China's corn prices in major producing regions remained largely stable in the week to Wednesday, but demand from the feed sector was still sluggish.

 

In Jilin, China's largest corn-producing province, prices of average-quality corn were quoted at about RMB1,080/tonne, compared with RMB1,040-1,080/tonne a week earlier.

 

Prices in Heilongjiang province, another major corn producing region in the north-east, were at RMB1,000/tonne, compared with RMB1,000-1,040/tonne in the previous week.

 

Average prices in Shandong province were at RMB1,530-1,550/tonne, steady from a week earlier.

 

Supplies in Shandong were reduced with the start of planting season, supporting corn prices, said Wang Shiliang, a trader at Jilin Grains Centre.

 

But recovery of the feed sector is slow as farmers are still concerned over epidemic diseases such as bird flu, he added.

 

Chen Mengshan, a senior official with the Ministry of Agriculture, said earlier this week that the accelerating growth of China's domestic corn demand may turn it into a relatively tight-supply country from a basically balanced market.

 

China has placed more strict controls over corn exports due to possible tight supply, hence helping to stabilise domestic prices, said Zeng Xuezhou, a trader at Beite Futures.

 

China's corn exports in March totalled 1.13 million tonnes, preliminary data provided Tuesday by the General Administration of Customs showed.

 

The country exported 2.9 million tonnes of corn in the first three months this year, up 32 percent from a year earlier.