November 24, 2005

China corn prices remain weak as bird flu concerns affect poultry production (Nov 24, 2005)

An eFeedLink exclusive report
 

Corn prices in China remained weak in the past week, due to the negative impact of bird flu on poultry production. In particular, prices fell by a bigger margin at Chinese ports and southern consumption regions.

In the north-eastern production regions, the release of big quantities of new crop corn into local markets has been delayed, as new crop corn were still at the threshing stage there. Thus, local corn prices were generally stable lately.

Farmers in the Yellow/Huai River production regions have started to suspend corn sales due to low procurement prices during the earlier period, in anticipation that prices would improve. Consequently, lesser quantities of new crop corn were released into local markets. Prices of corn from regions other than the north-eastern regions were also stable in recent days. Thus, local corn prices have improved marginally lately.

Corn prices at Chinese ports and southern consumption regions continued to move lower recently, amid stronger "wait-and-see" attitudes in the market. This was due to an increase in quantities of new crop corn arriving from north-eastern and northern China, and recent weakness in local livestock production.

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