December 1, 2005

China corn prices remain weak as bird flu concerns affect poultry production (Dec 1, 2005)

An eFeedLink exclusive report
 

Corn prices in China generally remained weak in the past week, with bigger price movements seen in some regions. Corn demand has remained sluggish due to the continued negative impact of bird flu on poultry production.

With the weather growing cooler in the north-eastern production regions, threshing of new crop corn was carried out at a faster pace lately. More new crop corn released into local markets, coupled with low procurement interests of traders, have caused local corn prices to move lower recently.

Corn prices in the Yellow/Huai River production regions were stable to lower lately, due to abundant supplies of new crop corn there, and less active purchasing by buyers from southern regions.

Meanwhile, CIF offer prices of corn at southern Chinese ports made significant gains recently. This was due to the delay in arrival of two bulk corn vessels and rumours that the corn export quota would increase.