November 17, 2005

China's corn prices fall mildly on bird flu worries
 

Chinese corn prices slightly fell in the week to Wednesday, continuing a fall that started more than two weeks ago on bird flu concerns.

As of Wednesday, China has reported 11 bird flu outbreaks since October, instilling fears in the local market that the disease could deal a big blow to the poultry industry, and in turn the feed industry.

Trading was cautious as many buyers took a wait-and-see attitude.

In eastern Shandong, one of China's major corn-producing and corn-consuming provinces, prices for average quality corn produced in the province were quoted at RMB1,100-1,200/tonne, lower than RMB1,120-1,220/tonne a week ago.

In north-eastern Jilin, prices for newly harvested corn ranged from RMB960/tonne to RMB1,040/tonne after the high water content in new corn is discounted, flat from a week ago.

However, trading in the China's largest corn-producing province remained subdued on a lack of apparent buying interest.

Traders said feed makers are watching developments of the bird flu disease in other regions and are hesitant to build up corn stocks.

In Dalian, a major gateway in Liaoning province for grains produced in north-eastern China, FOB old corn prices were quoted at about RMB1,200-1,210/tonne, lower than RMB1,220/tonne a week ago.

Meanwhile in Guangdong, a major corn-consuming province in southern China, corn prices were about RMB1,300/tonne, largely steady from a week ago.

Local traders said trading remained limited due to worries over a spread of the bird flu virus.