July 15, 2010

China's corn prices stable amid light trade

Corn prices in China's major producing areas were mostly stable in the week to Wednesday (Jul 14), with trading light amid limited supply in the market.

Prices in Changchun in Jilin province were around RMB1,780-1,800 (US$263-$266) a tonne compared with RMB1,790 (US$264)/tonne a week ago.

Prices in Shijiazhuang in Hebei province were unchanged at RMB1,930-1,940 (US$285-$286)/tonne.

Farmers have almost sold out their crop while traders don't have much stock on hand, said an analyst, adding recent government policies to ease price rises had also curbed any attempt to push prices up.

Market participants also stayed on sidelines amid talk that the government may adjust its policies for weekly corn auctions in the northeast major producing areas to allow only industrial processing plants to buy the crop, as many processors had suspended operations due to a lack of supply.

The government currently only allows feedmeal companies to make purchases at the auctions.