Government stockpiling policy stabilises China corn prices

Corn prices in China's major producing areas were mostly stable in the week to Wednesday (Dec 30), while rising slightly in some areas, underlining market confidence in the government's supportive purchase policy.

Corn prices in Shandong were around RMB1,860/tonne (US$272.35), unchanged from a week earlier.

In Jilin, the price was RMB1,850/tonne (US$270.89), up from RMB1,650/tonne (US$241.60) a week earlier.

A strong corn harvest for 2009, with prices protected by government stockpiles, continues to underpin market sentiment.

Analysts believe that prices are likely to rise in the coming months with the approach of the Lunar New Year.