May 28, 2009
China corn prices mixed; market waits for government sales policy
Corn prices in China's major producing areas were mixed in the week to Wednesday (May 27), as the market awaited the government's policy on the sale of its corn stocks.
Industrial processing plants in Jilin province, a major production area, bid between RMB1,500-RMB1,550 a tonne for corn, down RMB50 from a week ago.
Corn prices in Weifang in Shandong province were between RMB1,590-RMB1,600/tonne, up from RMB1,540 a week earlier.
"(Buyers) lowered their bidding prices as they waited for the government's auction," while farmers in the northeast were more willing to sell their stocks after they completed the spring planting, said an analyst with Chicorn Network.
The government bought around one-fourth of the corn harvested in China last year, and the market has been expecting it to release the crop to the market soon.
However, processing plants in areas where corn is not widely grown are buying the crop to restock amid falling supply, helping to push local prices higher, said analysts.
Corn prices in the southern consumption areas were stable amid weak demand.
The feedmeal demand this year is likely to be the same as last year's or even slightly lower on sluggish pork prices, said Li Lei, an analyst with China National Cereals Trade Corp.
