August 9, 2010

China's DCE July corn price trends up

China's corn price in Dalian Commodity Exchange (DCE) resumed increasing in July, said the State Grain and Oil Information Centre.

By the end of July, the corn settlement price in DCE rose to RMB1,980 (US$293)/tonne, up RMB40 (US$5.91)/tonne from June. The price of corn delivered by small boats rose RMB60 (US$8.87)/tonne from June to reach RMB2,080 (US$307)/tonne.

The centre attributed the price hike to the rising corn demand and tight supply of high-quality corn. In view of the live pig price rise, feed companies began to show rising demand for corn.

The rainy weather and regional floods in north China in July will affect corn growth, and then the corn supply.

The wheat price also climbed together with the corn price. This means that it is impossible for businesses to replace corn with wheat.

The international corn price also rebounded sharply in July due to the falling US corn inventories and the serious draught in Russia and some European countries.