July 8, 2010
China's corn prices down on higher crop forecast
China's corn prices in major producing areas were mostly lower or stable in the week to Wednesday (Jul 7), weighed by imports and forecasts of a sizable harvest this year.
Prices in Changchun in Jilin province were around RMB1,790 (US$264.40) a tonne, declining a marginal RMB10 (US$1.48) from a week ago, China Grains Network research house reported.
Prices in Harbin in Heilongjiang province were RMB1,680-1,700 (US$248.15-$251.11)/tonne, unchanged from a week ago.
"Auction prices have begun to weaken, but the supply of quality corn is still seen to be relatively tight," China Grains said. "Most of the news for more price upside has been factored in by the market."
While about one million tonnes of expected US corn shipments are likely to have a limited impact on China's overall annual corn consumption of about 157 million tonnes, rising domestic output should start weighing on prices, it said.
A moderating pace of economic expansion in China could also translate to lower demand for livestock feed, which may add further downside for corn.
