December 28, 2010

China continues soy, corn auctions

China will continue to release state reserves of soy and corn this week even though its previous soy sale attracted no bidders.

The government will again release 300,000 tonnes of soy and 1.8 million tonnes of corn on Tuesday (Dec 28), according to official announcement released on the National Grain & Oil Trade Centre.

The sales aim to cool food price rises which helped drive up the country's inflation to a 28-month high in November.

Poor crushing margins after Beijing capped price rises for vegetable oils led to nil bidding last Friday for 191,000 tonnes of soy auctioned by the soy-growing province of Heilongjiang.