China to sell more corn in north-eastern production regions

China will release a total of 1.38 million tonnes of corn from state reserves on April 20, after last week's sale failed to tame domestic prices.

Of the total, 800,000 tonnes would be released from state inventories in three major growing provinces in the northeast, where prices rose to record high level, according to the National Grain & Oil Trade Centre.

Higher domestic prices as a result of Beijing's stockpiling last year amid a lower domestic harvest led feedmills and corn processors in the south to seek cheap corn overseas.

Last week, the government sold 852,074 tonnes, nearly 80% of planned offer, at the highest price of RMB2,010 (US$294) per tonne.

Despite the larger amount, corn prices at the Dalian Commodity Exchange traded slightly higher on Friday (Apr 16) on concern that snow in the northeast could delay planting of the crop. The most-traded September contract settled at RMB1,913 (US$280) per tonne.