November 8, 2006

China may issue corn export quotas soon

China may issue higher-than-expected corn export quotas over the next few days as the shipment dates of several corn export orders won by Chinese traders in recent months draw to a close, according to a report by the commodities analysis firm JCI Shanghai, Wednesday.

China's corn exports have fallen 68.7 percent on-year to 2.37 million tonnes in January-to-October, the General Administration of Customs. In October alone, corn exports were at 80,000 tonnes.

Chinese traders are not allowed to ship corn out of the country unless the federal government allots them a specific export quota. The previous corn export quota issued by the government expired Feb 28 this year.

JCI said that the government may issue corn export quotas "markedly higher" than the 3 million tonnes expected by traders.

Chinese exporters have been making brisk corn export sales recently as corn prices have been on the rise since September, because of buoyant Chicago Board of Trade corn futures.

JCI said that corn export orders for Chinese traders since July have totaled 3.5 million-3.7 million tonnes so far.

Most of these shipments are slated for delivery later this year or early next year, traders said.