China corn prices mixed; more supply comes into market

 

 

Corn prices in major producing areas of China were mixed in the week to Wednesday, with more supply coming into the market.

 

Corn prices in Tongliao in Inner Mongolia were RMB40 a tonne higher at around RMB1,320/tonne.

 

Corn prices in Changyi in eastern Shandong province were between RMB1,900-RMB1,920/tonne, down RMB20-RMB40/tonne from a week ago.

 

More corn is coming to market in eastern China due to better weather, and processing plants have reduced their bidding prices for the crop.

 

But prices in mid consumption areas were higher due to higher demand from feedmeal companies keen to build up their stocks.

 

Analysts said corn prices are likely to consolidate within a tight range this week and trend slightly higher due to tight supplies.

 

The price rise in consumption areas is likely to help limit the fall in some producing areas, they added.

 

The recovery in the feedmeal sector and increased demand from industrial processing plants that produce items such as starch and ethanol will also help to boost corn prices.

 

The government sold 837,100 tonnes of corn during its weekly auctions Tuesday, or 57 percent of the 1.46 million tonnes it offered to sell.