October 27, 2008
 
China Corn Weekly: Prices weaken despite government procurement (week ended Oct 26, 2008)

 

An eFeedLink Exclusive
 


Price summary
 

Prices were lower in most areas.

 

   Weekly transacted prices of second-grade corn in China (Moisture content 14%)

Region

Price type

Price as of Oct 24(RMB/tonne)

Price as of Oct 17 (RMB/tonne)

Price change(RMB/tonne)

Heilongjiang

Ex-warehouse

1,520-1,560

1,520-1,560

0

Jilin

Ex-warehouse

1,350 new

1,350

0

Dalian Port

FOB

1,670

1,690

-20

Hebei

Delivery Price

1,620

1,640

-20

Henan

Delivery Price

1,500 new

1,540

-40

Shanxi

Ex-warehouse

1,420 new

1,450

-30

Shandong

Delivered-to-feedmill

1,620 new

1,640

-20

Jiangsu

Rail Station

1,780

1,780

0

Shanghai

Rail Station

1,800

1,820

-20

Zhejiang

Rail Station

1,820

1,830

-10

Jiangxi

Rail Station

1,820

1,820

0

Hunan

Rail Station

1,880

1,880

0

Hubei

Rail Station

1,840

1,840

0

Sichuan

Rail Station

1,750

1,780

-30

Guangdong

CIF

1,770

1,790

-20

Southern part of Guangxi

CIF

1,860

1,880

-20

Fujian

CIF

1,810

1,830

-20

All prices are representative and are for reference only.
RMB1=US$0.1462 (Oct 27)

 
 

Market analysis

 

Corn prices fell further with more supplies of new crops on the market.


The government procured a total of 5 million tonnes of corn at RMB1,500/tonne in the northeastern region and Inner Mongolia. This, however, failed to stimulate buying interest in the open market.

 
 

Market forecast

 

Near-term corn prices are seen stable to lower amid sluggish demand and increased supply.


 

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