December 14, 2007

US corn sales rises to 26-year highs as China curbs exports

Corn sales since Sept. 1 have risen 34 percent from a year ago to 36.588 million tons, the most since 1980, USDA data show.

US grain companies reported export sales of 1.16 million tonnes for the week ended Dec. 6, up 9 percent from the previous week, the USDA said.

Meanwhile corn futures for March delivery climbed to US$4.3875, the highest since March 1.

Most-active futures have climbed 23 percent in the past year and reached a 10-year high of $4.5025 on Feb. 26 on record demand for corn to make ethanol.

Corn also rose on speculation China will end tax rebates for corn exports due to rising domestic prices. China was the fourth-largest exporter of the grain last year.

In China's Dalian Commodity Exchange corn futures rose to $6.01 a bushel, a 69-percent rise over the past year.

However, the sky-high prices have not dented demand.

China's inflation, already at an 11-year high, would likely go up further due to food prices, China's National Development and Reform Commission has said.