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December 29, 2008
 
China Corn Weekly: Prices stabilise on government buying (week ended Dec 28, 2008)

 

An eFeedLink Exclusive
 


Price summary
 

Price falls abated in most regions.

 

   Weekly transacted prices of second-grade corn in China (Moisture content 14%)

Region

Price type

Price as of Dec 28 (RMB/tonne)

Price as of Dec 21(RMB/tonne)

Price change(RMB/tonne)

Heilongjiang

Ex-warehouse

1,340

1,360

-20

Jilin

Ex-warehouse

1,350

1,350

0

Dalian Port

FOB

1,480

1,480

0

Hebei

Delivery Price

1,340

1,360

-20

Henan

Delivery Price

1,380

1,380

0

Shanxi

Ex-warehouse

1,360

1,360

0

Shandong

Delivered-to-feedmill

1,400

1,420

-20

Jiangsu

Rail Station

1,440

1,440

0

Shanghai

Rail Station

1,460

1,460

0

Zhejiang

Rail Station

1,550

1,550

0

Jiangxi

Rail Station

1,550

1,550

0

Hunan

Rail Station

1,560

1,560

0

Hubei

Rail Station

1,540

1,540

0

Sichuan

Rail Station

1,640

1,640

0

Guangdong

CIF

1,580

1,540

40

Southern part of Guangxi

CIF

1,600

1,570

30

Fujian

CIF

1,580

1,580

0

All prices are representative and are for reference only.
RMB1=US$0.1462 (Dec 29)

 

Market analysis
 

Corn prices were lower in some regions.

 

Many small and medium-size deep corn processing factories were forced into bankruptcy or suspended their operations temporarily amid poor general economic situation. This thus weakened the demand for corn.

 

Sluggish livestock replenishment activity also affected corn demand for feed.

 

However, as the government has set out to purchase 20 million tonnes of corn for its reserves, corn prices stabilised in some regions and even rose in Guangdong and Guangxi.

 

 

Market forecast

 

The government will likely implement more measures to prop up price of agricultural commodities. However, farmers who are holding on to abundant supplies of corn will be eager to release their supplies prior to the Spring Festival in end January. Corn prices are thus seen weaker in the near-term as supply will likely exceed demand.


 

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