April 13, 2007

China may issue 1.2 million tonnes corn export quotas
 

China's government may allocate fresh corn export quotas of 1.2 million tonnes in the near future, a report by the Shanghai-based commodity analysis firm JCI said Thursday.

JCI said the quota could be the "first batch" of corn export quotas, and that more could follow later.

Fresh Chinese corn export quotas will likely put downward pressure on international corn prices, as Chinese corn export prices are generally US$8-10/tonne lower than US corn.

The report did not say exactly when the quotas would be announced.

In the last quarter of 2006, China allocated 4.5 million tonnes of corn export quotas, which were valid until the end of February. No quotas have been issued since.

Chinese traders cannot export more corn than the quota allotted to them by the government.