August 20, 2008

China moves corn shipments south to tame prices


China's State Administration of Grain ordered allocation of 519,500 tonnes of corn from the producing areas of the northeast to the southern region to further tame prices.


The corn will be sent to nine provinces and cities, including Sichuan, Jiangsu and Guangdong provinces, said the administration in a statement published on its Web site late Tuesday (August 19, 2008), issued jointly with other government departments.


Corn prices have declined recently on sluggish feedmeal demand. Feedmeal demand is low as the surge in its prices have eaten into profits of the livestock and poultry industry, forcing them to curb purchases.


The allocation of corn, despite weakening prices, shows the government's resolve to further control grain prices to curb inflation, said a local analyst.

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