April 10, 2015

 

China to start selling state corn reserves this week

 

 

China will begin to sell corn from its state reserves this week, a month earlier than last year, as it tries to cut down on record high stocks.

 

According to the statement released by the National Grain and Oil Trade Centre, four southern provinces will auction a total of 317,500 tonnes of corn from the state reserves this Thursday, with other provinces following suit shortly. Analysts expect domestic corn prices to drop as the auction is performed before the closing of the government'sFY2014/15.

 

The central government will complete its collection of corn from the north east corn beltby end of this month. The government has collected more than 76 million tonnes of corn for FY2014/15 thus far, accounting for more than 35% of its domestic production in 2014.Domestic corn prices have raised to anew high since last October's harvest. Corn prices in Shenzhenhad increased nearly 2%, to RMB2,530 per tonne (US$ 409)last week.

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