June 4, 2009
China corn prices stable in northeast; higher in mid regions
Corn prices in China's northeast major producing areas were stable in the week to Wednesday, but rose in the mid regions as the market expects the government to sell corn at higher prices.
Corn prices bid by processing plants in Jilin province were RMB1,500-RMB1,550 a tonne, stable from a week ago.
Corn prices in Shandong province were RMB1,540-RMB1,660/tonne, up RMB10-RMB90 from a week ago.
Farmers in the northeast resumed corn sales after the spring planting, but the volume was limited.
Prices in Shandong were higher as traders and end-users were buying actively in expectation of higher corn prices at the government's auctions.
The government bought around one-fourth of the corn China harvested last year, and said it will sell them at higher than the purchase prices.
The auction timetable hasn't been announced yet, but some analysts expect the government to sell the corn from July.
Meanwhile, farmers in the mid regions were also busy harvesting wheat, as a result of which the corn sales volume dwindled, supporting prices.
