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December 1, 2008
 
China Corn Weekly: Prices spiral downwards on weak demand (week ended Nov 30, 2008)

 

An eFeedLink Exclusive
 


Price summary
 

Prices were stable to weaker in most regions.

 

   Weekly transacted prices of second-grade corn in China (Moisture content 14%)

Region

Price type

Price as of Nov 30 (RMB/tonne)

Price as of Nov 23 (RMB/tonne)

Price change(RMB/tonne)

Heilongjiang

Ex-warehouse

1,520-1,560

1,520-1,560

0

Jilin

Ex-warehouse

1,350

1,350

0

Dalian Port

FOB

1,560

1,560

0

Hebei

Delivery Price

1,500

1,500

0

Henan

Delivery Price

1,480

1,480

0

Shanxi

Ex-warehouse

1,400

1,420

-20

Shandong

Delivered-to-feedmill

1,520

1,520

0

Jiangsu

Rail Station

1,580

1,580

0

Shanghai

Rail Station

1,740

1,740

0

Zhejiang

Rail Station

1,660

1,660

0

Jiangxi

Rail Station

1,630

1,660

-30

Hunan

Rail Station

1,740

1,760

-20

Hubei

Rail Station

1,750

1,750

0

Sichuan

Rail Station

1,700

1,700

0

Guangdong

CIF

1,690

1,710

-20

Southern part of Guangxi

CIF

1,730

1,750

-20

Fujian

CIF

1,680

1,690

-10

All prices are representative and are for reference only.
RMB1=US$0.1465 (Dec 1)

 
 

Market analysis

 

Corn prices fell in the southern consumption regions and provinces east of Sichuan. Prices were lower in the southern ports amid lower freight costs. In the northeast corn production regions, corn prices were stable consequent of the government's price control actions.

 

Hog and broiler farmers increased animal releases and cut back on replenishment so as to reduce animal rearing losses. Lower animal inventories thus caused corn demand for feed to fall during the week in review.

 

With local corn prices falling continuously, the government has announced the lifting of corn starch export taxes as of December 1 in a bid to stimulate overseas demand and support higher local corn prices.

 

However, the global credit crunch has led to lower international corn prices, which mean China's corn starch may not be very much lower than international prices even after the lifting of export taxes.

 

 

Market forecast

 

Corn prices are seen weaker in the near-term.


 

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