May 17, 2007

Dry weather in north-east China limiting corn sprout growth

Dry weather in north-east China has limited the growth of corn sprouts and the cost of production will likely increase significantly due to higher land prices, said the Jilin Province Grain Administration Thursday.

Insufficient rain has cut the normal growth of a large amount of corn in the western area of north-east China, and some areas have not been planted with corn yet, said the administration in an article published on its website.

The corn planting season in north-east China, the major growing region for corn and soybeans, is approaching its end.

The planting area, in Jilin and Liaoning provinces, increased by 10-15 percent from a year earlier because of high corn prices and the country's favourable agricultural policies, it said.

Rising land prices will likely push up the production cost, and farmer profits may be at risk if corn prices are lower this year, said the administration.

Analysts have said corn prices could be lower this year due to increased planting areas around the country.