December 7, 2007

China to sell 500,000 tonnes of corn from state reserves

China will sell a total of 500,000 tonnes of corn from its state reserves next Tuesday, said the National Grain & Oil Trade Center on Friday (December 7, 2007).

The corn will be sold in Guangdong, Fujian and Sichuan provinces, as well as Guangxi autonneomous region and Shanghai, the statement said.

This is the first batch of corn from state reserves to be sold according to a plan announced by the National Development and Reform Commission earlier this week.

Last week, the China National Grain & Oils Information Center, a state-backed agency, said the country will sell at least 2 million tonnes of corn from state reserves to tame high domestic feedmeal prices, after corn prices rose to a record this year.

"I don't expect the sales to affect prices much, as the floor prices will be set generally in line with current cash values," said Wang Shiliang, a trader at the Jilin Grains Center.

"This is to ensure the supply before the year-end, which usually sees seasonal strong demand," Wang said.