September 21, 2006

China to export 1.2 million tonnes corn November-January

Grain companies from China's north-east have signed contracts lately to export 1.2 million tonnes of corn in November, December and January, a local trader said Wednesday (Sep 20).

Prices for corn to be exported are around US$154/tonne on delivery, with South Korea as the main destination, said the trader with Dalian Fortune Group Co.

Dalian Fortune Group Co is a major grain trading firm in the north-east, the largest corn producing region in China.

The government will offer tax rebates for the corn exports, he added without elaborating.

The deals could be a sign of a resumption of large-scale Chinese corn exports.

Chinese Customs data showed that the country exported 2.19 million tonnes of corn in the first three months of this year, a rise of 28.4 percent on the year.

The exports slumped to 40,086 tonnes in April as strong domestic demand market dispensed with the need for exports, analysts said.

China's corn output is expected to total 142 million tonnes in the 2006/07 marketing year, which runs from October to September, while demand will reach 138 million tonnes, according to the China National Grain and Oils Information Centre, a major government-backed think tank.

Corn prices were quoted around RMB1,210-1,260 a tonne (US$152.30-US$158.60/tonne) in major producing regions in China last week.