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November 17, 2008
 
China Corn Weekly: Prices fall on week demand (week ended Nov 16, 2008)

 

An eFeedLink Exclusive
 


Price summary
 

Prices were stable to lower in most areas.

 

   Weekly transacted prices of second-grade corn in China (Moisture content 14%)

Region

Price type

Price as of Nov 14 (RMB/tonne)

Price as of Nov 7 (RMB/tonne)

Price change(RMB/tonne)

Heilongjiang

Ex-warehouse

1,520-1,560

1,520-1,560

0

Jilin

Ex-warehouse

1,350

1,350

0

Dalian Port

FOB

1,580

1,600

-20

Hebei

Delivery Price

1,520

1,550

-30

Henan

Delivery Price

1,500

1,500

0

Shanxi

Ex-warehouse

1,420

1,420

0

Shandong

Delivered-to-feedmill

1,550

1,580

-30

Jiangsu

Rail Station

1,700

1700

0

Shanghai

Rail Station

1,740

1,700

0

Zhejiang

Rail Station

1,820

1,740

0

Jiangxi

Rail Station

1,820

1,820

0

Hunan

Rail Station

1,860

1,860

0

Hubei

Rail Station

1,800

1,820

-20

Sichuan

Rail Station

1,700

1,710

-10

Guangdong

CIF

1,710

1,710

0

Southern part of Guangxi

CIF

1,780

1,780

0

Fujian

CIF

1,690

1,690

0

All prices are representative and are for reference only.
RMB1=US$0.1465 (Nov 17)
 
 

Market analysis

 

Some farmers were reluctant to sell their corn during the week in review. High cultivation costs incurred have led these farmers to hold back on releases in anticipation of better prices offered by the government.


Despite lower corn supplies in the market, prices did not improve as corn demand has weakened.


Low hog prices have impacted backyard farmers' piglet replenishment interest. Feed millers expected weaker hog feed demand in the next season and have therefore cut back on corn purchase.


Also, the government has announced the reduction or waiver of export taxes for corn, wheat and rice starting December 1. However, China's corn has already lost its price competitiveness with the fall of international crop prices in recent weeks. Thus exports are not seen to provide any stimulus to the domestic corn market.

 
 

Market forecast

 

Corn prices will weaken further, although at a slower rate, in the near-term.


 

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