August 24, 2010

China reaffirms adequate domestic corn supply

China's domestic corn supply is adequate and the state corn reserve is abundant, with no looming shortages this year, said Shang Qiangmin, director at the China National Grain and Oils Information Centre (NGOIC).

The NGOIC has added a provisional auction of reserved corn (including central government reserves) last Friday (Aug 20) to sell one million tonnes of corn after its Tuesday auction in the same week, reflecting China's determination and strength in controlling the corn market, Shang said.

Besides, new corn supply will soon be available on the market, and the country's current corn reserves can fully meet market demand.

According to Shang, corn is now growing well in Northeast China, the main corn-producing region, and corn output in the area is expected to post a significant on-year increase if no massive meteorological disasters happen later this year.

In addition, China will resolutely crack down on any speculative activities in corn market, he added.