September 22, 2010

China's weekly corn auction sales pick up

The government sold 35.1% of 999,500 tonnes of corn reserves offered at a regular auction Tuesday (Sep 21), a rise from 14% sold last week, based on a similar volume of corn.

Demand at the state auction rose as shortages hit high-consumption areas ahead of the new crop arriving next month, with auction price averaging RMB1,617 (US$241)/tonne, according to the state-backed China National Grain and Oil Information Centre.

Grain authorities have been releasing corn stockpiles in weekly auctions to stave off price increases, especially after a sharp rally in August.