December 5, 2007

China schedules sale of corn reserves on December 11

The Chinese government announced to sell corn from state reserves by next week to bring down record domestic prices.

The first batch of corn will be sold on December 11 via bidding at wholesale markets, according to the National Development and Reform Commission.

The sale aims to ensure corn supplies and stabilise market prices, commission officials said.

China's industry analysts and traders anticipate the government to sell more than 2 million tonnes to help feed mills in the south after domestic corn prices rose to more than 10 percent in November. 

Traders also opined that the impact will be short term as a smaller harvest this year and surging demand, particularly from ethanol producers, will keep supplies tight before February 2008.