July 26, 2006

China corn prices unchanged as trading volume declines
 

China's corn prices remained flat in the week to Wednesday (Jul 25) while trading volume declined.

In Jilin, China's largest corn-producing province, prices for average quality corn were quoted around RMB1,220-RMB1,270 a tonne, the same as the previous week.

Prices in Heilongjiang province, another major producing area in the northeast, were about RMB1,220/tonne to RMB1,230/tonne.

"Trading volume was thin in Jilin and Heilongjiang as farmers had sold out their stocks," said Wang Shiliang, an analyst at Jilin Grains Centre.

"Corn processing companies started to buy corn from trading firms," he added.

Meanwhile, prices in Guangdong province, one of the largest consumption areas in the south, fell RMB20 from the previous week to about RMB1,410-RMB1,420/tonne.

"Prices in Guangdong will not fall much further as trading firms have substantially reduced shipping corn from the northeast to Guangdong," Wang said.

"However, a strong rebound is not expected as demand for corn in southern China remains weak," he added.