September 22, 2011

Corn prices in major producing areas of China rose in the week to Wednesday (Sep 21), as buyers continued to draw down inventories ahead of the harvest next month.

Prices in Changchun in Jilin province rose to around RMB2,440 (US$382)/tonne, from RMB2,400 (US$376)/tonne a week earlier.

In Shandong province, where the corn processing industry has a heavy presence, corn prices were around RMB2,700-2,800 (US$423-438)/tonne compared with RMB2,540 (US$398)/tonne last week.

"Stocks are still very tight, as the new corn crop is still at least half a month away from harvest."

China is expected to see a record corn harvest this year, according to official forecasts, which may relieve prices in the fourth quarter.

Still, swiftly rising consumption has kept domestic prices high and fuelled expectations that China will re-enter the market for corn imports.

"Prices are still relatively high globally, but if there's a dip, China will definitely buy," experts said.