November 4, 2010

China corn prices increase on late crop

Corn prices in China's major producing areas rose in the week to Wednesday (Nov 3), with producers unwilling to sell in the hope of pushing prices higher.

Prices in Harbin, Heilongjiang province, were around RMB2,220-RMB2,230 (US$330-US$334) a tonne, up RMB20-RMB30 on week. Prices in Baicheng, Jilin province, were around RMB1,520-RMB1,560/tonne (US$228-US$234), up RMB60 (US$8.99) from a week ago.

Corn futures on Dalian Commodity Exchange set fresh records last week on expectations of strong demand and possible weather-related shortages in the US.

China's corn harvest in the major producing areas of the north was five to 10 days later than usual, following an unusually cold spring this year. Demand remains strong in the physical market, with buyers staying bullish on price prospects.

The government sold 31% of 788,400 tonnes of corn reserves offered at a regular auction Tuesday (Nov 2), up from 22% sold a week earlier, the state-backed China National Grain and Oil Information Centre said.