July 7, 2010

Rain lessens dryness in China's northeast corn area

Rain over the past two days has eased dryness in China's major corn- and soy-growing areas in the northeast, reducing worries over a possible drought amid higher-than-normal temperatures, local analysts said Tuesday (Jul 6).

More rain was forecast for late this week in the northeast, but high temperatures prevailed in northern parts of the country, including Hebei and Shandong.

"Feed mills in the south are still keen for US imports. Many are expecting domestic prices to rise from mid-August and supply will be tighter in the coming two months," analysts said.

Sales volume at the government's weekly corn sale fell this week from last week. Beijing's restriction over bidders cooled price rises at the weekly auctions. Corn processors would be allowed to bid for fixed amounts next week, traders said.