December 11, 2007

China sells 238,100 tonnes of corn from state reserves

China sold 238,100 tonnes - or about 48 percent of the 500,000 tonnes it planned to sell - of corn from its state reserves, said the National Grain & Oil Trade Center on Tuesday (December 11, 2007).

The prices, which ranged from CNY1,760 to CNY1,850 a tonne, are reasonable compared with cash rates, said traders.

The auction won't have much impact on corn prices, as the volume is not large, said Shen Wei, a manager at COFCO Maize Co.

He added that chances of a downside in corn prices are limited as the government needs to fill its corn reserves once prices head lower.

The corn was sold in Guangdong, Fujian and Sichuan provinces, as well as in the Guangxi autonneomous region and Shanghai.