July 12, 2006

China's corn prices flat, farmers' stocks sold out

China's corn prices were mostly unchanged in the week to Wednesday in a balanced market, traders said.

In Jilin, China's largest corn-producing province, prices for average quality corn were quoted around RMB 1,220-RMB 1,270 a tonne, almost the same as that of the previous week.

Prices in Heilongjiang province, another major producing area in the north-east, were also unchanged at around RMB 1,200/tonne-RMB 1,220/tonne.

"Trading volume was relatively low as farmers have sold most of their stocks." said Wang Shiliang, an analyst at Jilin Grains Centre.

"On the other hand, the effects of bird flu and foot-and-mouth disease outbreaks continue, and feed producers are reluctant to buy in large amounts, said Wang.

He added that the prices are unlikely to fall much either, in view of rising industrial demand.

Meanwhile, prices in Guangdong province, a major consumption area in the south, fell RMB 10 from the previous week to around RMB 1,440/tonne.

"Corn prices will probably hold at the current level with small fluctuations before the end of August." Wang said.

The next corn harvest will take place around August.