China corn prices fall as US imports relieve tight supply

China's corn prices in major producing areas mostly fell in the week, as supply tightness began to ease when the first batch of US corn shipments arrived in Chinese ports.

Prices in Qinggang in Heilongjiang province were RMB1,780-1,800 (US$261.2-264.1) a tonne, down from RMB1,840-1,860 (US$270-272.9) a tonne a week ago.

The prices in Changchun in Jilin province were slightly lower at around RMB1,800 (US$264.1) a tonne from RMB1,820 (US$267) a tonne a week earlier.

"The documents passed promptly through customs and cleared for discharge into the port warehouse," said Dan Keefe, the council's marketing specialist. "The cooperation throughout the supply chain...appears to be very good. This is a very positive indication for future corn imports."

The unloading is expected to be completed by the end of the week, the council said. The next vessel is expected in July.

So far, about one million tonnes of corn shipments are due to arrive from the US this year, a council official said Wednesday (June 23).

China has taken the unusual step of importing large amounts of corn this year to relieve weather-related shortages this year.

"The arrival of the US corn is bringing downward pressure on prices, as well as the fact that many processors are still holding corn," said Xu Wenjie, analyst with Tianma Futures Co.