June 21, 2007

 

China corn prices stable; feed demand slows

 

 

Corn prices in China's major corn producing regions were mostly stable in the week to Wednesday (Jun 20), but prices in some regions rose on industrial demand.

 

In Jilin, China's largest corn-producing province, prices of average-quality corn were quoted around RMB1,360-1,540 a tonne, compared with RMB1,380-1,500/tonne a week earlier.

 

Prices in Heilongjiang province, another major corn-producing region in the northeast, were RMB1,300-RMB1,420/tonne, unchanged from the week before.

 

Average prices in Shandong province were at RMB1,500-RMB1,620/tonne, stable from a week earlier.

 

Total trading is light as most feed meal processing plants have slowed purchases, while traders were reluctant to sell the few stocks they had, said a local trader.

 

With the wheat harvest almost completed, more wheat is being used as feed meal.

 

China has harvested 21.07 million hectares of wheat, or more than 95 percent of the wheat it planted, the Ministry of Agriculture said Wednesday.

 

It started summer planting of crops such as corn, with the provinces of Shandong, Henan and Hebei having completed nearly 90 percent of summer corn planting, it said.

 

Some corn processing plants for industrial use raised purchase prices due to insufficient stocks.

 

Higher temperature and less rain curbed corn's growth, with the drought in northwest Liaoning province and west Jilin province being serious, said traders.

 

Traders expect corn prices to rise further in July on insufficient stocks.