China corn prices up on declining supply; rain to damp output

Corn prices in China's major producing areas were higher in the week to Wednesday on dwindling supply in the market.

 

Corn prices in Harbin in Heilongjiang province were around RMB1,520-RMB1,600 a tonne, up from RMB1,500 a week ago.

 

Corn prices in eastern Shandong province were around RMB1,770-RMB1,860/tonne, up from RMB1,680-RMB1,820/tonne a week earlier.

 

Trading in most northeast producing areas was very light as there isn't much crop left in the market due to the government's large volume of purchases.

 

So far, the government hasn't released any plan for sales of the crop, and traders don't dare make aggressive purchases as a result.

 

Rains in many northeast producing areas have affected the corn crop and will damp output this year, said industry participants.

 

It will be very hard for China to see an on-year increase in grain output this year due to ongoing weather problems, said an official with the Ministry of Agriculture last week.

 

"It's a challenge for China to increase its grain output this year," as "the autumn grain output will definitely not increase on year," said Cao Liqun, an official with the Rural Economy Research Center under the ministry.

 

US$1 = RMB6.83280 (Jul 15)