December 15, 2008
Corn demand will remain weak in December as prices continue to fall and companies face difficulties, said the China National Grain & Oil Information Centre.
Grain-consuming enterprises usually rush to buy reserves in December, a month before the Chinese traditional spring holiday. However, enterprise purchases have been declining instead in the first 10 days of December.
Price falls in production areas have lowered the enthusiasm of those enterprises. In north China's Hebei province, purchasing prices fell by RMB50-100 per tonne from the last 10 days of November to the first 10 days of December.
Sales of the enterprises have also been falling. In Shandong province, which is a major deep-processing area in China, half of the starch sugar enterprises have either ceased production or shut down.
The feedstuff industry is also facing a hard time. Based on a survey on major feedstuff companies in Guangdong and Henan provinces, feedstuff output in December is expected to fall 5-20 percent from November.