November 4, 2009
China corn prices mostly stable; big supply yet to enter market
Corn prices in China major producing areas were mostly stable in the week to Wednesday, as a large volume from the new harvest has not entered the market yet.
Bids from processing plants in the country's biggest producer Jilin province were between RMB1,440-RMB1,480 a tonne, unchanged from a week earlier.
Corn prices in Zhaodong in Heilongjiang province were between RMB1,610-RMB1,630/tonne, also stable.
Farmers are unwilling to sell their crop in expectation of higher prices, as the government has said it will continue to purchase the crop this year.
Entering into November, corn prices will be supported by increasing demand from feedmeal companies, and they're unlikely to reduce their bids because their stock levels are low, said an analyst with Chicorn Network.
New crop corn prices in Jilin province were higher than last year due in part to reduced output from an earlier drought.
But corn prices are unlikely to rise much further because supply will be increasing from November as the new crop enters the market, said analysts.
The government sold 331,000 tonnes of corn during its weekly auctions Tuesday (Nov 3), or 13 percent of the 2.51 million tonnes it planned to sell.
US$1 = RMB6.82726 (Nov 4)
