China's CNGOIC maintains forecast on corn, soy output

China's official grain think tank maintained its estimate for the country's 2009 corn output at 163 million tonnes, a fall of 1.8 percent from last year, in its latest forecast issued on Thursday (Nov 12).

 

Meanwhile, China National Grain and Oils Information Centre (CNGOIC) kept its forecast for soy output unchanged from last month's estimate of 14.5 million tonnes, which is 6.7 percent lower than last year.

 

China's physical corn prices rose this week as supplies were tightened with bad weather delaying the drying process.

 

In addition, the market anticipation that Beijing may pay corn farmers prices higher than last year's RMB1,500 (US$219.7) per tonne in its stockpiling programme lent further upward support to Dalian futures prices.

 

According to industry sources, Sinograin and two other state-owned enterprises, including COFCO Corp, are likely to be invited to participate in the stockpiling programme.

 

On the other hand, Chinese farmers have almost completed the sowing of winter wheat and rapeseed. Winter wheat accounts for more than 95 percent of the country's total wheat harvest.

 

China's ministry of agriculture said the planting acreage of winter wheat is expected to rise slightly from last year's level while farmers are likely to maintain their sowing areas for rapeseed.

 

Recently, Beijing has promised to raise the government's minimum wheat purchase price by 3.4 percent to boost the farmer's planting interest.

 

                                         Notes: * Estimated figures.