China to buy soy, corn for reserves starting December

The Chinese government will begin buying soy and corn in northeastern areas from December 1, according to an announcement released by the National Development and Reform Commission and several other authorities.

The state purchase plan is scheduled to last until April 30, 2010.

It has set corn's purchase price for temporary reserves at RMB1.48 to RMB1.52 per kg, and that of soy at RMB3.74/kg, compared with RMB3.7/kg during last year's stockpiling.

However, the government has not revealed the amount of soy and corn it plans to purchase this year. Analysts say this is favourable to stabilising market prices and protecting farmers' interests.

China purchased a total 5.25 million tonnes of soy and 30 million tonnes of corn for state reserve last year.

US$1 = RMB6.82 (Nov 30)