China corn prices up in eastern, southern areas on less supply

Corn prices in China's major producing areas in the northeast remained mostly stable in the week to Wednesday, while they rose in the eastern producing areas and southern consumption areas.

 

Corn prices in Harbin in Heilongjiang province were around RMB1,500 a tonne, stable from a week ago.

 

Corn prices in eastern Shandong province were around RMB1,680-RMB1,820/tonne, up from RMB1,680-RMB1,800/tonne a week earlier.

 

Corn prices in consumption areas of southern Guangzhou province were around RMB1,770/tonne, up RMB20.

 

With little locally produced corn in Shandong province, feedmeal companies and industrial processing plants are seeking it from other areas, pushing prices up, said the China Corn Network.

 

But the rise was milder than in past weeks as traders aren't actively building up their stocks due to concerns over government sales, said Wang Cheng, an analyst with Nanhua Futures Co.

 

Corn prices are likely to remain high as the government has a large volume of corn on hand and it's able to support the prices, said some analysts.

 

Prices of agricultural products in China face more downward pressure in the second half of this year, the official People's Daily cited an official from the Ministry of Agriculture as saying Wednesday.

 

Markets for agricultural products will face many challenges and difficulties for the rest of the year, as the impact of the global financial crisis will persist, the report said, citing the unnamed official.

 

US$1 = RMB6.83342 (Jul 8)