August 9, 2010

China's corn prices to keep steady in August

China's corn market will remain stable in August, according to the forecast of the State Grain and Oil Information Centre.

In August, the government will continue to put national and provision corn reserves on the market.

As August is often the season of sales, trade enterprises and farmers are likely to sell out their corn inventories.

The delivery of the imported corn generally concentrates in the middle of August. These factors should push up the corn supply.

Feed enterprises had already raised corn inventories in July, and will not increase them more in August.

The centre said that the government will strengthen corn price monitoring so as to ensure market stability in August.

Despite the tight supply of corn from the US, the influence of the international corn price hike will wane in August, as Chinese businesses have limited corn import quotas.