December 3, 2010

Grain prices in northeastern China hit record high

Grain prices in northeastern China, the country's major grain production area, have reached record highs due to panic buying from grain processing firms and traders.

Driven by farmers' reluctance to sell and the international bull market, grain prices in northeastern regions have seen an overall rise. Average corn prices in Jilin province have approached RMB1,850 (US$278)/tonne, up RMB300 (US$45)/tonne on-year.

Despite bumper harvests in northeastern regions, all players on the grain market still expect higher grain prices and are actively stockpiling. Furthermore, the coming Spring Festival holidays are another boost for grain demand.