May 24, 2010

China to maintain low grain prices

The government of China is likely to keep grain prices under control this year on the account of sufficient stock along with a summer bumper harvest.

As per the latest release by State Administration of Grain, the central government's corn stocks are at a historic high and a third of the stocks are sufficient to meet local demand.

The government has other measures to control the rise of grain prices, such as increasing auction volumes, selling strategic reserves if needed and adjusting the corn export tax rebate,.

Moreover, China will likely have a bumper summer grain harvest this year, helping to ease any major rise in grain prices.