October 20, 2005

Corn prices in China generally stable; marginal price movements in specific regions (Oct 20, 2005)

An eFeedLink exclusive report

Corn prices in China were generally stable early this week, but there were mixed price movements in some regions. 

Significant quantities of new crop corn were not yet released into local markets in the north-eastern production regions, thus causing a temporary supply shortage and stable to higher prices there.
 

With improving weather in the Yellow / Huai River production regions, new crop corn harvested could be promptly dried there. Thus, new crop corn was released into local markets in increasing bigger quantities, and prices consequently moved lower there.

New crop corn from regions other than north-eastern regions had high moisture content and many grew mouldy and spoilt. Coupled with the fact that new crop corn was not yet released into local markets in the north-eastern production regions, the quantity of corn arrivals at some areas within the southern consumption regions have fallen. This consequently caused delivered-to-station prices there to edge higher.

Due to increased quantities of corn arrivals at southern Chinese ports and the wait-and-see buying attitudes of local feed millers, corn prices continued to move lower there.

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