August 23, 2006

China corn prices unchanged; demand, supply in balance
 

China's corn prices were mostly unchanged in the week to Wednesday (Aug 23), with demand and supply in balance.

In Jilin, China's largest corn-producing province, prices of average quality corn were unchanged from last week at around RMB1,220-RMB1,260 a tonne.

Prices in northeastern Heilongjiang province, another major producing area, were quoted around RMB1,200-RMB1,220/tonne, largely the same as last week.

Corn prices held stable with both demand and supply unchanged," said Wang Shiliang, an analyst at Jilin Grains Centre.

Feed and other corn processing companies have to buy from corn trading firms or state warehouses because farmers have sold out their stocks, he said.

Meanwhile, corn prices in Guangdong province, one of the largest consumer areas in the South, were quoted at around RMB1,430-RMB1,440/tonne, unchanged from last week.

Recent increases in prices for pork and poultry have triggered market expectation that demand for feed would rebound soon. Even if that is the case, prices are unlikely to rise much due to large stocks, Wang said.

Corn prices would probably hold at the current level with small fluctuations in some regions before the new harvest of corn comes to the market in October and November, Wang added.