China said in the previous week that it may introduce controls on essential items including those used to make food to stop inflation that reached a two-year high in October. Food costs jumped 10.1% that month, according to statistics bureau data. China may also sell from government stockpiles to reduce increasing prices, an analyst said.

 

''The oilseed market remains uncertain, with an unfavourable economy in the short term, related to the situation in China,'' the analyst said. ''Chinese authorities are planning to sell basic products such as oilseeds and cereals on the domestic market, coming from national stocks to limit the increase.''

 

Prices also decreased as the dollar strengthened, causing US crops to be more costly in terms of other currencies, after North and South Korea exchanged artillery fire. The US Dollar Index, a six-currency gauge of the greenback's strength, increased as much as 0.7%.

 

Soy for January delivery decreased by US$0.0225 or 0.2%, to US$12.19 a bushel on CBOT, dismissing a climb of as much as 2%.

 

Corn for March delivery declined by US$0.045, or 0.9%, to US$5.25 a bushel. The grain has plummeted by 9.8% since the end of October.