June 10, 2010

China corn prices stable in northeast

Corn prices in China's northeast major producing areas were stable in the week to Wednesday (June 9), but fell in southern consumption areas as traders were more willing to sell the crop.

Prices in Yushu in Jilin province were RMB1,780-1,800/tonne (US$260.6-263.5), stable from a week ago.

In Heilongjiang province they were RMB1,740-1,800/tonne (US$254.7-263.5), unchanged from a week earlier.

Prices in southern consumption city Shanghai fell RMB20/tonne (US$2.93) to RMB2,080/tonne (US$304.5).

Feedmeal processors were not buying big volumes as corn prices are not expected to rise since the government is determined to curb any surge.

The government offered to sell one million tonnes of corn in the northeast major producing areas, slightly higher than the 984,700 tonnes it offered to sell last week.

This week's auction includes corn from the central reserves, which the government earlier said it would sell after the temporary reserves were sold out.

China National Grain and Oils Information Centre said Wednesday (June 9) that it expects the country's corn output in 2010 to rise 2.5% to 168 million tonnes tracking a rise in planted area.

Corn output in Jilin, one of China's major producing provinces, is likely to recover to normal levels in 2010 despite delayed planting, the Dalian Commodity Exchange (DCE) said Monday (June 7).

Although bad weather delayed corn planting in northeastern China by a couple of weeks this year, most farmers in the province had completed corn planting by early May and the area switched to other crops was small, the DCE said, citing the results of a research trip to the province organised by the exchange.