September 15, 2005

Corn prices in China generally higher but stable in north-eastern production regions (Sep 15, 2005)

An eFeedLink exclusive report

Corn prices in China were generally higher early this week, except in north-eastern production regions where prices were stable.

Prices in the Yellow / Huai River production regions generally edged higher in recent days. This was due to tight supplies there while awaiting the release of new crop corn into local markets.

Limited availability of freight transportation in northern China and a rise in transportation costs, have disrupted corn deliveries from the north-eastern production regions to the southern consumption regions. This in turn resulted in smaller arrival volumes in the southern consumption regions and a consequent surge in corn prices there.

Also, rising domestic ocean freight cost and shipments delayed by a recent typhoon have reduced arrival volumes of corn at southern Chinese ports. This in turn caused a sharp fall in port inventories and consequent surge in corn prices there. But there were few deals concluded.

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