China's corn prices climb; processors hike bids to compete for supply

Corn prices in China's major producing areas were either stable or higher in the week to Wednesday (Jun 2), as industrial processors hiked bid prices to attract volume amid tightening supply.

Processors in Siping, Jilin province, bid RMB1,840-RMB1,850 (US$269-US$271) a tonne, up RMB50-RMB70/tonne (US$7.3-US$10.2) from a week earlier. The prices were RMB1,880-RMB1,900/tonne (US$275-US$278) in Shenyang, Liaoning province, stable from a week earlier.

Official data showed China's corn output last year fell 1.94 million tonnes, or 1.2%, to 163.97 million tonnes, beating market expectations of a 20 million-tonne fall.

Corn farmers in Heilongjiang have 2.5 million tonnes of corn on hand after completing sowing in the province, with more corn areas planted than planned, according to analysts.

But feed meal demand from the hog industry is unlikely to improve much during the low-consumption summer season; meanwhile, hog prices have been falling, damping breeders' interest in feed, said analyst Feng Yonghui.

The government sold 924,500 tonnes of corn in major northeast producing areas Tuesday (Jun 1), or 94% of the volume it offered to sell. Both volume and prices fell compared with last week. It also sold 444,500 tonnes of the crop in southern consumption areas on the same day, or 79% of the offered volume.