September 14, 2007

China may not issue new corn export quota by year-end

China is unlikely to issue a new quota for corn exports this year due to concern over higher corn prices, a major corn exporter said Friday (Sep 14).

Jiliang Grain Group Co. and COFCO Ltd. have already signed corn export contracts covering a quota of 1.4 million tonnes issued in March and would complete all exports by year-end, said Jiang Jianhua, Jiliang Grain Group Co.'s vice president.

China exported 1.25 million tonnes of corn during April-August 2007.

China has been controlling corn exports due to concern over grain security.

Corn prices would remain stable until at least the spring of 2008, due to high stock levels, said Jiang, adding corn stocks in Jilin and Heilongjiang provinces, as well as the Inner Mongolia Region totaled 15 million to 20 million tonnes by the end of August.

Jiang does not expect China to import corn in the 2007-08 crop year, starting from October, as domestic supply would be higher than demand.