November 24, 2006

China confirms corn export deals total 4 million tonnes

China's corn exports will total around 4 million tonnes in the November-February 2007 period, the National Grains & Oils Information Center, which falls under the State Grain Administration, said Friday.

Since July, China has signed contracts to export 4 million tonnes of corn, CNGOIC said, citing the National Development and Reform Commission.

There has been widespread market talk that China has inked deals to export 4 million tonnes of corn during the four-month period, but this marks the first official confirmation.

Rising prices on the international market has made China's corn exports more competitive, said the NDRC, China's top economic planning agency that is tasked to review the country's grain exports and imports.

"Early this month, the NDRC issued over 4 million tonnes in corn export quotas under which grain companies could export corn until the end of next February," said an analyst with the CNGOIC, who declined to be named.

Surging exports have contributed to a recent surge in domestic corn prices.

"Recently, exporters started to buy corn for export, supporting domestic prices," the analyst added.

Corn prices were quoted at RMB1,350-RMB1,650 a tonne in China this week, around RMB200/tonne higher from a month earlier.

China's corn exports fell 68.7 percent on year to 2.37 million tonnes in January-to-October, according to Chinese Customs.