April 9, 2009
China corn prices mostly stable; some up on thin supply
Corn prices in China's major producing areas were mostly stable in the week to Wednesday (Apr 8), but prices in some areas were higher on thin supply.
Corn prices in the eastern part of Heilongjiang province were between RMB1,200-RMB1,340 a tonne, stable from a week ago.
Corn prices in Dezhou in Shandong province were between RMB1,420-RMB1,560/tonne, up RMB20.
Trading was very light as the government's purchases are almost completed, and farmers were busy preparing for the upcoming spring planting.
But some processing plants raised their bids for corn due to the thin supply, while farmers were reluctant to sell on expectations of higher prices.
The government's purchases have boosted the market's forecast for higher grain prices.
Demand from the feedmeal sector also helped support corn prices somewhat, said traders.
Corn prices in the southern consumption areas are likely to remain high in the near term on tight supply, the China Corn Network said in a note.
US$1 = RMB6.83650 (Apr 9)
