June 30, 2010
China's weekly state corn sales show increase
On Tuesday (Jun 29), China sold 679,100 tonnes of corn in the northeast at weekly state auctions, and the volume was higher than the previous week.
Analysts expect Beijing to relax control over bidders and their bidding volume after domestic a price rise eased.
But cheap US corn prices would continue to attract Chinese feedmills and companies, which have since late April booked more than one million tonnes from the world's largest exporter.
"US prices are offered cheaper at RMB1,730 (US$254.6) (after tax) per tonne or even lower, companies have been buying US corn and hedge against Dalian prices <0#DCC:>," said one analyst.
The most-active January 2011 Dalian contract was traded at RMB1,853 (US$272.7) per tonne on Tuesday. The price fell 4% from its highest May level after Beijing has taken measures, including the latest to scrap tax rebates on exports of corn products, to cool domestic corn prices.
