May 5, 2011

Corn prices in major producing areas of China rose in the week to Wednesday (May 4) as traders took advantage of strengthening demand in southern areas.

Prices in Changchun in Jilin province rose to RMB2,080-2,100 (US$320-323)/tonne, up from RMB2,000-2,020 (US$308-322)/tonne a week earlier.

In Shandong province, prices were RMB2,260-RMB2,280 (US$348-351)/tonne compared with about RMB2,260 (US$348)/tonne last week.

Demand for corn was strong compared with soy, the China National Grain and Oil Trade Centre said. Buyers snapped up 17.5% of 572,142 tonnes of corn offered Wednesday, compared with no bids for nearly 300,000 tonnes of soy.

Corn demand peaked in Shandong and Guizhou provinces, where many downstream manufacturers and processors are based, reaching 90%-100% of offered stocks.

In high-consumption Beijing, sales were around 63% of offered stocks.

Sales of port stocks at the major harbours of Dalian and Guangdong fetched RMB2,200-RMB2,320 (US$339-357)/tonne.

"Spot corn prices are expected to ride on an acceleration of demand in the southern (consuming) regions," the Chicorn Network said in a note Wednesday.