October 26, 2010
China's Dalian corn futures hit new record
Most of China's Dalian corn futures contracts traded at their highest levels on Monday (Oct 25) due to concerns over tight supplies in the country.
The most-traded May 2011 contract traded up 2.28% to as high as RMB2,248 (US$337.5) per tonne.
"Physical supply is very tight. Many firms are holding low stocks now and farmers are not selling at a large volume," a feed mill trader said.
Physical corn prices in the major consuming region of Guangdong province jumped to RMB2,200 (US$330.4) per tonne, up about 4% over last week's level, the trader said.
A low stock level at feed mills and processors due to a lower harvest last year have prompted many to snap up supplies of the new crop that are now available only in parts of northern provinces. Farmers in the largest northeast provinces have not begun to sell their harvest, the trader said.
The Dalian market was also supported by US corn futures, which rose more than 2% during the Asia trading session, edging closer to a two-year high reached earlier this month.
