October 27, 2005 

Corn prices in China generally stable to lower; new grain release weigh on prices (Oct 27, 2005)

An eFeedLink exclusive report

Corn prices in China were generally stable to lower early this week. Any marginal falls in corn prices were mainly due to lower returns gained by farmers, and the seasonal downward pressure on prices with the release of new grain into markets nationwide.

Corn supplies remained tight in the north-eastern production regions, as limited quantities of new crop corn were released into local markets. Thus, corn prices remained firm there.

Following significant quantities of new crop corn released into markets in the Yellow / Huai River production regions, corn prices continued to move lower there. Thus, local market sentiments were bearish.

Increasing quantities of relatively cheaper new crop corn arrived at the southern consumption regions lately, from regions other than the north-eastern regions. This consequently weighed on local corn prices.

Meanwhile, corn prices at southern Chinese ports continued to move lower, due to sluggish demand and significant inventory build up there.  

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