October 29, 2009
China corn prices mostly stable; farmers reluctant to sell
China's corn prices in major producing areas were mostly stable in the week to Wednesday (October 28), as farmers were reluctant to sell their crops.
In Changchun's National Grain Trading Centre in Jilin province prices were RMB1,500 (US$219.60) to RMB1,700 (US$248.88) a tonne, stable from a week ago.
Farmers kept their crops in anticipation of prices rising further on the back of planned government purchases.
Meanwhile, output in Jilin, the biggest corn-producing province, is expected to fall by around 25 percent, to 16 million-17 million tonnes, which may tighten local supply despite the government's large reserves, according to a Jilin Grain Market research note.
Traders and end users were buying actively, also expecting prices to rise.
The prices in other major producing areas stabilized or rebounded from earlier falls.
In addition to holding out for better prices, many farmers were also busy planting their winter crops, and don't have time to sell corn on hand.
Market participants are waiting for the government to provide details on its price-support policy, which will help determine corn's future prices, analysts said.
The government sold 244,400 tonnes of corn during its weekly auctions Tuesday, or 9.7 percent of the 2.51 million tonnes it offered.
US$1 = RMB6.83 (Oct 29)
