August 13, 2009
China corn prices stable; tight supply, government sales support
Corn prices in China's major producing areas were mostly stable in the week to Wednesday (August 12), supported by tight supply and the government's regular sales.
Corn prices in Heilongjiang province, the biggest producer, were RMB1,520 to RMB1,560 a tonne, unchanged from a week ago.
Prices in Qingdao in Shandong province were RMB1,830 to RMB1,840/tonne, little changed from a week earlier.
The government's regular sales, on par with market prices, helped prevent a fall in local prices.
The government sold 725,900 tonnes of corn from its reserves this week, or 36 percent of the 2 million tonnes it planned to sell.
However, the increasing corn supply from the government is likely to push down prices a little bit, said China National Grain and Oils Information Centre in its analysis.
US$1 = RMB6.83 (August 13)
