May 12, 2011
Stronger demand underpins China's corn prices
Corn prices in the major producing areas of China rose in the week to Wednesday (May 11), as demand continued to strengthen in southern areas.
Prices in Changchun, Jilin province rose to around RMB2,170-2,300 (US$334-354)/tonne, from RMB2,080-2,100 (US$320-323)/tonne a week earlier.
In Shandong province, corn prices were also edging slightly higher to around RMB2,270 (US$349)/tonne from RMB2,260 (US$348)/tonne last week.
Landed prices for imported corn were still around RMB2,700 (US$416)/tonne, though domestic prices have been steadily closing the gap as import prices continued to edge down after shedding RMB60 (US$9) last week.
Demand remained highest in provinces where downstream corn manufacturers and processors are based, such as Guizhou and Shandong.
Corn prices were also underpinned by depleted reserve levels. Government agencies have been importing corn to refill stockpile levels, and said they plan to purchase up to 10 million tonnes, without specifying its origin or a time frame.
