December 24, 2009

Corn prices in China's northeast major producing areas were higher in the week to Wednesday (Dec 23), and were mostly stable in the central producing areas.

Corn prices bid by major industrial processors in Changchun, Jilin were RMB 1,570-RMB 1,630 a tonne (US$229.92-US$238.71), up from RMB 1,560-RMB 1,610/tonne (US$228.46-US$235.78) a week ago.

Farmers in the northeast were expecting better corn prices tracking higher and soybean prices, despite more corn volumes entering the market, said analysts.

The government issued a list of state-owned companies that will buy corn from the northeast, further boosting market sentiment for higher prices.

Corn prices in the central producing areas were first lower but farmers did not accept the prices and were unwilling to sell, which helped prices recover.

Prices in the northeast will likely rise in the near term as processing plants need to maintain certain stock levels for production needs ahead of the long Chinese New Year holiday in mid-February, when farmers stop crop sales and enjoy the holiday for almost a month.