October 13, 2005

Corn prices in China generally stable but move within narrow range in some regions (Oct 13, 2005)

An eFeedLink exclusive report

Corn prices in China were generally stable early this week after the recent National Day holidays, but moved within a narrow range in some regions.

Prices remained firm in the north-eastern production regions, as only limited quantities of early ripening new crop corn were released into local markets.
 

Significant quantities of new crop corn were released into local markets in the Yellow / Huai River production regions. However, due to torrential rains before and after the National Day holidays, new crop corn harvested could not be promptly dried and many grew mouldy and spoilt. Thus, new crop corn was released into local markets at a slower rate and in reduced quantities. Consequently, prices there were generally stable.

Corn inventories were abundant in southern Chinese ports. Coupled with a recent slide in domestic ocean freight costs from high levels, corn prices consequently moved lower there.

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