China confirms limiting of state corn buyers 

China will limit the buyers of state corn sold in the northeast major producing areas to feedmill companies and breeders, in a move to prevent traders from pushing up prices amid tightening supply.

An industry official said on Thursday (May 13) that the government will limit corn buyers in its auctions to local feedmill companies to prevent traders from hoarding for speculation.

Concerns over tightening domestic corn supply, due to an output fall last year and uneven spring planting this year, prompted the government to ask state-owned Cofco Ltd. to buy six cargoes of US corn, the first time in more than a decade that Beijing has allowed companies to import such large volumes of US corn.

China, the world's largest corn consumer, has strict quarantine procedures for genetically modified corn imports from big suppliers like the US, which has effectively kept imports to a trickle.

Meanwhile, in another statement published on the website, CNGOIC said the government will auction 800,000 tonnes of corn in the northeast producing areas this week, and sell 580,000 tonnes in the southern consumption areas.