November 7, 2006

 

China corn prices falls as volumes from new harvest pours in 

 

 

Corn prices in China continued to fall late last month, pressured by new crop entering the market, according to the China National Grains & Oils Information Centre Tuesday (Nov 7).

 

Prices averaged RMB1,170.6 a tonne (US$148.60/tonne) across China in Oct. 21-30, down from RMB1,188.4/tonne in mid-October, the government-backed think tank said on its website, citing data from the National Development and Reform Commission. The NDRC is China's top economic planning agency.

 

But in major producing regions, including Heilongjiang, Jilin, Liaoning, Hebei and Shandong provinces, the average price of corn rose to RMB1,161.6/tonne from RMB1,155/tonne.

 

The average wholesale price of corn was at RMB1,224.8/tonne in late October, down from RMB1,244.2/tonne in Oct. 10-20.

 

Corn prices fell moderately in October as the new harvest started to enter the market, traders said.

 

"The early harvest that entered the market in the northern and central markets in October pressured corn prices," said Wang Shiliang, a trader at Jilin Grains Centre.

 

However, corn prices were stable in early November, with demand showing signs of recovery, and would probably rebound over the next couple of months.

 

"Livestock farmers have increased their purchases of feed in a rush to improve production to meet demand, which is expected to rise later this year," he added.

 

This week, corn prices nationwide were quoted around RMB1,150-RMB1,200/tonne, according to local traders.