November 15, 2007

 

China corn prices higher as farmers reluctant to sell
 

 

China's corn prices were higher in the week to Wednesday (November 14, 2007), as farmers were reluctant to sell.

 

Rising transport fees due the government's hike in domestic oil product prices, also helped to support corn prices at high levels, said analysts.

 

The prices of new corn arriving in Henan province were between RMB1,710-RMB1,720 a tonne, up RMB10-RMB20 from a week earlier.

 

The prices of new corn arriving in Hebei province were between RMB1,720-RMB1,730/tonne, up RMB20 from a week ago.

 

Corn prices in Shekou port were between RMB1,720-RMB1,770/tonne, RMB10-RMB30 higher than a week before.

 

The lower-than-expected corn output this year boosted corn prices, said the Jiangsu Grain Market, adding farmers were reluctant to sell due to the high growth rate of commodity prices.

 

China's consumer price inflation rebounded in October to match the 11-year high of 6.5 percent set in August. Food prices, which make up roughly a third of the CPI, rose 17.6 percent in October from a year earlier, compared with a 16.9 percent gain in September.

 

The China National Grain and Oils Information Center Wednesday said the country's corn output is estimated to total 148 million tonnes, down 1 million tonnes from its estimate last month.

 

The forecast, higher than 145.5 million tonnes the think-tank estimated for last year's corn output, is still much higher than the forecast of other private agencies.

 

Meanwhile, a delayed corn harvest in northeast China and recovering demand from the feedmeal sector also helped to support corn prices, said analysts.

 

However, they said corn prices are unlikely surge in the rest of this year due to the coming new harvest, the government's control on corn exports as well as sufficient stocks.

 

RMB 1.00 = USD$0.134644