China corn prices stable in northeast, up in east on low stocks

China's corn prices in major producing areas in the country's northeast remained mostly stable in the week to Wednesday (July 1), while they rose in the eastern parts.

Prices in Heilongjiang province were between RMB1,500-RMB1,560 a tonne, unchanged from a week earlier. In Shandong province they increased to RMB1,680-RMB1,800/tonne compared with RMB1,660-RMB1,740/tonne a week ago.

Low stocks with farmers amid the ongoing summer-crop plantation boosted prices in the east.

Continued rains in the northeastern areas affected corn's growth, adding further support, said analysts.

The government's renewed announcement that it will sell corn from its reserves at rates no lower than last year also boosted market expectations of an increase in prices.

The recovery in pork prices, which was somewhat helped by the government's purchase of frozen pork, is likely to help increase demand for corn as feedmeal in the near term, supporting prices, said China Corn Network in its analysis note.

Average pork price has risen by 2 percent in late-June from a month earlier, according to data from the Ministry of Commerce.

The market is awaiting the long-expected sale of corn by the government from its reserves to ascertain future price directions.