November 10, 2006

 

China issues 4-million-tonne corn export quota this week

 

 

China's National Development and Reform Commission issued around 4 million metric tonne of corn export quotas this week, a trader at Jiliang Group Co. said Friday.

 

The NDRC released quotas for corn exports that have been approved since early September, which totaled around 4 million tonnes, the trader said.

 

State-owned Jiliang Group Co is a major corn exporter in China, and the country's corn exports are subject to approval from the NDRC.

 

However, the country's top economic planning agency is not expected to grant new export quotas for additional corn exports in the near future, because of concerns over a possible shortage in domestic supplies.

 

"The NDRC did not say it has halted corn exports, but it definitely wants corn exports to slow after a surge in exports over the past two months," he said.

 

In September and October, Chinese grain companies signed contracts to export over 4 million tonne of corn for delivery late this year and early next year, according to local traders.

 

China exported 2.37 million tonnes of corn from January to October, down 68.7 percent on year, Chinese customs data showed.

 

"Apart from honoring existing contracts, Jiliang has suspended corn exports on concerns of insufficient supplies over the next few months, as domestic prices are rising," the trader added.

 

China's corn output is expected to reach 142 million tonne in the October 2006 to September 2007 crop year, up 1.9 percent on-year, Government backed think-tank China National Grains & Oils Information Centre forecast.