December 13, 2004

 

 

Falls in China's Corn Prices Slowed in November; Good Near-Term Export Prospects

 

China's Corn Market Monthly Report - November 2004  

 

An eFeedLink Special Report      

 

Below is an abstract of the report: Falls in China's Corn Prices Slowed in November; Good Near-Term Export Prospects 

  

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Corn prices in China continued to fall in November, with the monthly country-wide average price for second-grade corn down month-on-month by 4.7% at RMB1,238/ton.  

 

With current season's corn harvesting activities basically drawing to a close in November, both the USDA and China National Grains and Oils Information Center have adjusted upward their forecast of China's corn output for the current year to 126 million tons and 133 million tons respectively. Analysts see the significant increase in corn output this year as the key factor driving corn prices downward in China during the past few months and possibly over the coming months.   

 

As at end November, China's first batch of 1.4 million tons of corn export quota allotted for this year has been fully used up, while the second batch has yet to be exhausted.

Notwithstanding the lower volume seen in China's corn exports this year, the recent rise in US corn prices has widened the export price differential between US and Chinese corn by more than USD 20 /ton. Offer prices for US corn to Southeast Asian regions as at December 6 have risen to the levels of USD 161-162 /ton, which spell good potential for an increase in China's corn exports.

 

More contents in this 3-page report include:

 

I.      Downward Pressure on Prices Exacerbated By Upward Revision of Corn Output Forecast

 

II.     Slow Procurement of New Corn in Northeastern Production Regions

 

III.    Prices in Yellow River/Huai River Production Regions Stabilized in End November

 

IV.    Good Corn Demand from Livestock Industry with the Approach of Festive Seasons

 

V.      Rise in US Corn Prices Favorable for China's Corn Exports